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Reliance Industries said to stop Russian oil imports under Rosneft deal
Reliance Industries's “realignment” comes even as the US and Europe pile on more sanctions on Russia over crude oil exports.
Reliance Industries Ltd. will stop Russian oil imports under its long-term deal to buy nearly 500,000 barrels of crude from Rosneft after the US sanctioned the Moscow-backed oil producer, Reuters reported on Thursday.
Earlier, an RIL spokesperson said that India's biggest private refiner plans to adjust its Russian oil imports to align with the government's guidelines.
“Recalibration of Russian oil imports is ongoing and Reliance will be fully aligned to Government of India guidelines on the extent of recalibration,” an RIL spokesperson told Reuters when asked about its plans to cut its crude imports from Russia.
Reliance Industries is the biggest Indian importer of Russian oil and operates the world's largest refinery in Jamnagar, Gujarat.
Reliance-Rosneft Deal
Reliance, controlled by billionaire Mukesh Ambani, has a long-term deal to buy nearly 500,000 bpd of crude oil from Rosneft. The refiner also buys Russian oil from intermediaries.
In recent days, Reliance has purchased spot crude cargoes from the Middle East and Brazil, which could be used to partly replace Russian crude, traders said. It was seen in the market on Thursday scouting for supplies, said a Middle Eastern trader approached by Reliance.
One of the sources said that before the US move, Reliance was considering stopping Russian oil imports for the one of its two refineries that is export-focused due to a ban by the European Union on refined products produced from Russian oil that takes effect in January.
Indian refiner Nayara Energy, whose biggest shareholder is Rosneft, also buys oil from the Russian state company. Nayara did not immediately respond to Reuters' request for comment.
ALSO READ | India set to curtail Russian oil imports after US sanctions Rosneft, Lukoil
Indian state refiners rarely buy Russian oil directly from Rosneft and Lukoil as their purchases are typically made through intermediaries.
