Once again Moscow is linked to Jamnagar, the world’s largest oil refinery. This refinery belongs to none other than Asia’s richest businessman Mukesh Ambani. According to foreign media reports, Mukesh Ambani’s Jamnagar refinery has started buying Russian oil again. This time Reliance Industries’ supplies are coming from Russian companies that are free from American and European sanctions. A few days ago there was news that Reliance has stopped buying Russian oil due to sanctions and has increased supplies from the Middle East.
Reliance has once again decided to increase the supply of Russian oil after the withdrawal of banned companies and the entry of non-banned companies. The big question now is whether tensions between the US and Europe could rise once again. Because 25 percent additional tariff is imposed on India on buying Russian oil. In addition, the US also imposed sanctions on two major Russian companies to prevent Russian oil from entering the market. On the other hand, Europe is also considering Russian oil in a similar way.
Reliance again took Russian supplies
A Bloomberg report cited sources with knowledge of the matter as saying that Reliance Industries Ltd has resumed discounted purchases of Russian crude oil. The company is buying oil from non-restricted suppliers and sending it to its refinery in Gujarat. Sources told Bloomberg on condition of anonymity that India’s largest refiner has contracted Aframax tankers from Rusexport and is sending oil to the 660,000-barrel-per-day plant to supply domestic customers. Its return to the market is likely to offset a decline in India’s purchases of Russian oil, which officials say could more than halve this month.
Two companies were banned
Oil markets are watching the fate of Russian exports after Washington in October imposed sanctions on two of Moscow’s top producers in an attempt to block Kremlin funding for the Ukraine war. This has forced Indian refineries to resort to exports from non-approved Russian entities – as well as expensive alternatives from elsewhere – although Russian flows are still expected to drop significantly.
Reliance itself halted Russian purchases after the US imposed sanctions on Rosneft PJSC and Lukoil PJSC on October 22 and gave refiners a month to end transactions with the two producers. Reliance, which owns and operates the world’s largest refinery campus at Jamnagar in Gujarat, was given an additional month to get the contracted vessels before October 22, sources said.