Indian conglomerate Reliance Industries will not purchase Russian oil loaded on tankers operated by SCF following recent US sanctions, reported Reuters, citing sources.
This decision is expected to exacerbate Russia’s challenges in exporting oil, as the country’s companies may find it increasingly difficult to secure shipping for their surplus oil, especially after Ukrainian drone attacks on Russian refineries.
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Russian companies are already facing hurdles in collecting payments for oil exports due to banking restrictions.
The US has been imposing sanctions on Russia since its invasion of Ukraine two years ago.
In February, the US targeted SCF and 14 crude oil tankers involved in the transportation of Russian oil.
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Reliance, which has been a significant buyer of Russian Urals oil, has requested that future supplies not involve SCF-operated tankers, according to sources.
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By GlobalDataNeither Sovcomflot nor Reliance responded to Reuters‘ requests for comment on the matter.
The move by Reliance could signal a broader shift among Indian refiners, which are planning to avoid SCF vessels to avoid repercussions from US sanctions, the sources said.
This cautious approach could impact India’s imports of Russian oil, leaving Russia with fewer options to sell its oil.
Indian refiners are being “extra cautious” to sidestep any potential backlash from Washington, with heightened scrutiny from banks and US authorities of Russian oil transactions.
They aim to steer clear of entities that are directly or indirectly affected by sanctions, as per sources.
A source from the Indian Government stated: “Our preference is that refiners should not take oil in sanctioned vessels, because of our political and commercial interests and the US sanctions.”
The government will make decisions regarding the entry of sanctioned vessels or SCF ships into Indian ports, the source added.
The oil and shipping ministries of India refused to offer any comment on the report.
In a related development, Bharat Petroleum Corporation (BPCL), a state-run Indian oil refiner, has secured a deal with BP to purchase one million barrels per month of US West Texas Intermediate (WTI) crude for four months, the Economic Times reported, citing Reuters.
Deliveries under this agreement are set to commence in June this year.
Additionally, BPCL has independently procured two million barrels of WTI crude for loading in April through a spot tender.
