Reliance Continues Russian Oil Imports After Securing US Sanctions Waiver

Indian refinery company Reliance Industries Ltd continues to import oil cargo supplies from Russian refiner Rosneft after obtaining a one-month concession from the US, reports said. Rosneft and Lukoil, two of Russia’s largest oil refiners, were imposed with economic sanctions by the US and the European Union in an attempt to curb Moscow’s oil revenue. Washington imposed the sanctions in October and gave companies a wind-down transaction window until November 21, Reuters reported.

Reliance has a long-term deal with Rosneft to buy 500,000 barrels per day (bpd) of Russian oil for its 1.4 million bpd refining complex. The EU has said that beginning January 21, it will not take oil produced at refineries that received or processed oil from Moscow 60 days prior to the bill-of-lading date, the report said.

According to data from Kpler, Reliance has received nearly 15 cargoes of oil from Moscow’s Rosneft since November 22, the Reuters report said. “These are pre-existing transactions which are being wound down in a sanctions-compliant manner,” Reuters reported, citing Reliance Industries Ltd.

The private oil refiner has said it loaded the final cargo under the Rosneft deal on November 12, and would process Russian oil arriving post November 20 at its India-based 660,000 bpd plant. This will allow the firm to continue fuel sales to the EU from its 704,000 bpd export-driven refinery, the report said.

Reliance is next scheduled to receive one cargo of Russian oil in December and January, as per the report citing Kpler data. India, along with China, are two of Russia’s largest oil importers. India became the world’s largest buyer of seaborne Russian crude after the Kremlin’s invasion of Kyiv in 2022.

However, New Delhi has faced criticism from Washington and other European allies for its oil purchases from Moscow, as they allege Russia’s oil revenues help fuel the ongoing war. As per estimates from industry experts, India’s Russian oil imports in December are likely to range between 1.2 million and 1.5 million bpd, down from 1.77 million bpd last month.