General
Reliance Industries Ltd. resumed purchases of discounted Russian crude, sourcing barrels from non-sanctioned suppliers and routing them to its refinery in Gujarat, according to people with knowledge of the matter.
India’s largest refiner contracted Aframax tankers from RusExport and is routing flows to a 660,000-barrel-a-day plant that supplies domestic customers, the people said, asking not to be identified discussing sensitive information. Its return to the market is likely to pare a decline in India’s purchases of Russian oil, which officials have said could more than halve this month.
The oil market is focused on the fate of Russian exports after Washington imposed sanctions on Moscow’s two top producers in October in a bid to curb the Kremlin’s funds for the war in Ukraine. That’s left Indian refiners to tap exports from non-sanctioned Russian entities – as well as costlier alternatives from elsewhere – though Russian flows were still expected to drop sharply.
Reliance itself paused Russian purchases after the US sanctioned Rosneft PJSC and Lukoil PJSC on Oct. 22 and gave refiners a month to wind down transactions with the two producers.
Reliance, which owns and operates the world’s biggest refinery complex in Jamnagar, Gujarat, was granted an additional month to receive vessels it had contracted before Oct. 22, the people said.