Post by : Saif Rahman

Reliance Industries Ltd of India has successfully obtained a special one-month exemption from the United States, permitting it to continue importing oil shipments from the Russian producer Rosneft, as reported by informed sources. This approval comes in the wake of sanctions imposed by Washington on Rosneft and Lukoil earlier this year.

The US had previously established a deadline of November 21 for companies to terminate their business dealings with these two Russian energy entities. Reliance, under a long-term contract with Rosneft for 500,000 barrels of oil per day for its expansive 1.4 million bpd refining complex, can now manage certain existing oil shipments under this concession.

Since November 22, Reliance has taken in around 15 shipments of Russian oil, which the corporation asserts are “existing transactions being concluded in a manner compliant with sanctions.” The final shipment under the Rosneft agreement was loaded on November 12, and processing of Russian oil continues at its 660,000 bpd refinery focused on the Indian market. This strategy enables Reliance to maintain fuel supplies to the European Union from its 704,000 bpd export-oriented refinery.

Trade statistics reveal that Reliance anticipates receiving one shipment each from Russian trader RusExport in December and January. The firm has stressed that these imports align with sanctions while fulfilling its operational demands.

Since Russia's incursion into Ukraine, India has turned into the largest global purchaser of seaborne Russian crude, even though the US is pressuring the country to curtail imports. In December, Indian imports of Russian oil are projected to average between 1.2 to 1.5 million bpd, a decrease from 1.77 million bpd in November.

This US concession enables Reliance to efficiently manage its fuel supply chain amidst complicated international sanctions, while also facilitating the company’s continuation of refined oil exports to the EU without interruption.

#Business News