Trump sanctions impact: Reliance, India’s biggest importer of Russian oil, buys millions of barrels of crude from Middle East, US

​ RIL, which has been the largest importer of Russian oil by volume in this year, has bought millions of barrels of crude from the US and Middle East . (AI image)​

In what is being seen as a direct impact of Donald Trump’s sanctions on two major Russian oil firms, Reliance Industries Ltd (RIL) has purchased crude from the Middle East and the US.The supply of Russian crude to major Indian refineries is likely to decline considerably following sanctions on Rosneft and Lukoil PJSC, with Nayara Energy Ltd, backed by Rosneft, being the sole exception. Additionally, several Chinese firms have temporarily suspended their purchases whilst evaluating the implications of US sanctions.

According to a Bloomberg report, RIL, which has been the largest importer of Russian oil by volume in this year, has bought millions of barrels of crude from the US and Middle East after Russia’s Rosneft and Lukoil were hit by Trump sanctions.The company has purchased many oil grades, including Khafji from Saudi Arabia, Basrah Medium from Iraq, Al-Shaheen from Qatar, and West Texas Intermediate from the United States, according to traders who spoke to Bloomberg. The shipments are scheduled to arrive in December or January, the report said.

Rosneft, Lukoil are India’s top Russian crude suppliers

This year, Reliance Industries has emerged as India’s largest Russian oil importer by volume, procuring crude through an established long-term agreement with Rosneft PJSC. Whilst RIL regularly sources Middle Eastern crude, the latest acquisitions, including some deals completed just before the US sanctions announcement, have been notably more substantial than usual, according to the traders.Indian refiners have bought significant volumes from the spot market, with Reliance Industries purchasing at least 10 million barrels this month. The majority of these purchases, particularly those made after US sanctions, are Middle Eastern crude varieties, according to market traders quoted in the report.Traders also indicated that more Indian refineries are actively seeking spot shipments, particularly from suppliers in the Middle East, United States and Brazil. The market saw a strengthening of prices for varieties like Oman on Thursday, alongside an uptick in prompt timespreads for Dubai’s regional benchmark. The global Brent benchmark saw an increase of over 5%.