Post by : Saif
Al-Najjar
Reliance Industries Ltd of India has been granted a one-month special concession by the United States to continue importing oil from Russian producer Rosneft, as per sources close to the situation. This development occurs despite the sanctions imposed by the US on Rosneft and Lukoil earlier this year.
The US had previously mandated that companies must cease transactions with the two Russian energy firms by November 21. Reliance, which has an established contract to acquire 500,000 barrels of oil daily for its substantial 1.4 million bpd refining facility, can now manage specific pre-existing oil cargoes due to this concession.
Since November 22, the company has received around 15 cargoes of Russian oil, asserting that these are part of "pre-existing transactions being wound down in a sanctions-compliant manner." The final shipment under the Rosneft contract was loaded on November 12, and Reliance continues to refine Russian oil at its 660,000 bpd facility aimed at the Indian market. This strategy enables Reliance to sustain fuel exports to the European Union from its 704,000 bpd refinery dedicated to export operations.
Trade statistics reveal that Reliance is set to receive one cargo from the Russian trader RusExport in both December and January. The company assures these shipments adhere to sanctions while fulfilling its operational mandates.
Post-Russia's invasion of Ukraine, India has become the largest global buyer of seaborne Russian crude, although there is heightened pressure from the US to curtail imports. Projections for December indicate Indian imports of Russian oil will average between 1.2 and 1.5 million bpd, down from 1.77 million bpd in November.
The US concession aids Reliance in managing its fuel supply chain effectively while maneuvering through complex international sanctions. It further bolsters the company’s initiative to supply refined oil to the EU without interruptions.
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