India’s largest company Reliance Industries Ltd (RIL) is getting supplies of Russian oil despite US sanctions on Russian oil majors. In fact, thanks to a special one-month concession from Washington, Reliance continued to receive crude oil consignments from Rosneft, Russia’s state oil company. According to sources involved in the matter, this exemption was not announced earlier.
American sanctions were imposed in October
In October, the US imposed sanctions on Russian energy companies such as Rosneft and Lukoil. Under this, global companies were given time till November 21 to phase out transactions with these companies. However, Reliance got a temporary reprieve from this, which allowed it to complete the deal it had already agreed upon.
A large long-term contract with Rosneft
Reliance has a long-term contract with Rosneft, under which the company buys around 5 lakh barrels of Russian crude oil per day. The oil is processed at a 14 lakh barrel per day refining complex located in Gujarat, which is the largest refinery complex in the world.
New EU regulations add to the challenge
Meanwhile, the European Union (EU) has announced that after January 21, it will not import fuel produced at refineries where Russian oil is processed 60 days before the date of the bill of loading. This could make it more difficult for Indian refineries to export fuel to Europe.
Clarification Statement of Reliance
According to trade data agency Kpler, Reliance has received around 15 consignments from Rosneft since November 22. The company has said that all these deals have already been done, which are being completed under international sanctions rules. Reliance also clarified that the last cargo with Rosneft was loaded on November 12.
America’s pressure on India is increasing
After the Ukraine war, India has become the world’s largest buyer of seaborne Russian crude oil. However, the US is constantly pressuring India to reduce these imports. India’s Russian oil imports are expected to fall to 12 to 15 lakh barrels per day in December, down from November.