Reliance Industries is considering halting Russian oil purchases to avoid US sanctions, according to a Financial Times report. The latest development follows the US’s imposition of sanctions on key Russian crude giants, Rosneft and Lukoil.
According to a Reuters report earlier today, Reliance Industries, India’s largest oil refining company, is recalibrating Russian oil imports. “Recalibration of Russian oil imports is ongoing and Reliance will be fully aligned Government of India guidelines,” a Reliance spokesman said in response to a query by Reuters on whether the company plans to cut its crude imports from Russia.
Earlier in the day, President Trump indicated that Indian Prime Minister Narendra Modi has assured that India’s Russian oil purchases will go down by 40 per cent by year’s end.
Public sector companies’ stand
Furthermore, the Reuters report stated that India’s state-owned refiners and retailers, including Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corporation, are also reviewing their Russian oil trade documents to ensure that no supply will come directly from Rosneft and Lukoil after the US sanctions the oil companies. India’s oil ministry and the state refiners did not immediately respond to requests for comment.
“There will be a massive cut. We don’t anticipate it will go to zero immediately as there will be some barrels coming into the market,” a public sector company source said to Reuters
Reliance Russian oil purchase deals
Reliance Industries has a long-term deal to purchase nearly 500,000 barrels per day of crude oil from Russian oil major Rosneft. The refiner also buys Russian oil from intermediaries.
According to the report, in recent days, Reliance has purchased spot crude cargoes from the Middle East and Brazil, which could be used to partially replace Russian supplies. The report added that the company is scouting for oil suppliers in the Middle East