Once again Moscow has been connected to the world’s largest oil refinery Jamnagar. This refinery does not belong to anyone else but to Asia’s richest businessman Mukesh Ambani. According to foreign media reports, Mukesh Ambani’s Jamnagar Refinery has started buying Russian oil again. This time the supplies of Reliance Industries are coming from those Russian companies on which there are no American and European restrictions. A few days ago, news came that Reliance has stopped buying Russian oil due to sanctions and has increased the supply from the Middle East.
After the withdrawal of banned companies and the coming forward of non-banned companies, Reliance has once again decided to increase the supply of Russian oil. Now the biggest question is whether tension can increase once again in America and Europe. Because 25 percent extra tariff is imposed on India on buying Russian oil. Besides, America had also imposed sanctions on two of Russia’s biggest companies to prevent Russian oil from coming into the market. On the other hand, Europe is also considering Russian oil in a similar manner.
Reliance again took Russian supplies
The Bloomberg report, quoting sources with knowledge of the matter, said that Reliance Industries Limited has resumed purchasing discounted Russian crude oil. The company is purchasing oil from non-restricted suppliers and sending it to its refinery in Gujarat. Sources told Bloomberg on condition of anonymity that India’s largest refinery company has contracted Aframax tankers from Rusexport and is sending oil to the plant with a capacity of 660,000 barrels per day to supply to 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.
Ban was imposed on two companies
Oil markets are keeping an eye on the future of Russian exports after Washington in October imposed sanctions on Moscow’s two top producers in an effort to block Kremlin funding for the Ukraine war. This has forced Indian refineries to resort to exports from unsanctioned Russian entities – as well as expensive alternatives from elsewhere – although Russian flows are still expected to decline significantly.
Reliance itself halted Russian purchases after the US imposed sanctions on Rosneft PJSC and Lukoil PJSC on October 22 and gave refineries a month to end transactions with the two producers. According to sources, Reliance, which owns and operates the world’s largest refinery campus in Gujarat’s Jamnagar, was given an additional month to receive the contracted vessels before October 22.