crude oil
US President Donald Trump’s threat to buy Russian oil is not having any impact on India. Because Indian refinery company Reliance is continuously buying Russian oil. India’s Reliance Industries Ltd, which runs the world’s largest refining complex, will buy up to 1.5 lakh barrels of Russian oil a day from February for a refinery focused on its domestic market. A senior official of the company gave this information on Thursday.
Reuters had reported earlier this month that after a gap of one month, Reliance was going to buy Russian oil under sanctions rules in February and March. Reliance last got Russian crude oil in December, when it got a one-month exemption from the US. Under this exemption, the company could complete its deal with Russian oil producer Rosneft after the deadline of November 21.
The US had imposed sanctions on Rosneft and another Russian oil company Lukoil in October. However, Russian companies that are not subject to any sanctions and are trading intermediaries are still selling oil. During India Energy Week, the official said that from February, Reliance will buy up to 1.5 lakh barrels of Russian oil per day from sellers on whom there are no restrictions. As per company policy he refused to reveal his name. He also did not disclose the names of the vendors and Reliance did not immediately respond to a request for comment sent by Reuters.
Reliance Refinery
Earlier, Reliance was importing 5 lakh barrels of Russian crude oil per day under a long-term agreement with Rosneft for its Jamnagar refinery complex located in Gujarat. The group also purchases oil from Saudi Arabia and Iraq under fixed agreements to meet the needs of the Jamnagar Refinery Complex in Gujarat, and also sources oil from Canada. Reuters had also reported earlier this month that Reliance was seeking approval from the US to buy crude oil from Venezuela again. This is being done so that this private refiner can reduce its dependence on big Russian oil companies and can secure its supply.
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