Bloomberg: Indian Company Switches to Middle Eastern Oil After U.S. Sanctions on Russia

Indian conglomerate Reliance Industries Ltd. has purchased millions of barrels of crude oil from the Middle East and the United States following Washington’s sanctions on Rosneft and Lukoil, Bloomberg reported, citing traders who spoke on condition of anonymity.

The shipments are expected to arrive in December or January.

Reliance, previously India’s largest buyer of Russian oil this year, had been importing crude under a long-term contract with Rosneft. While the company has occasionally sourced oil from the Middle East before, traders said recent purchases – including some made earlier this week before the sanctions – have been unusually active.

In total, Reliance bought at least 10 million barrels of crude on the spot market in October, with Middle Eastern grades accounting for the majority of those purchases, most of which occurred after the U.S. sanctions were announced.

Russian oil deliveries to major Indian refineries are now expected to decline sharply, except for supplies to Rosneft-backed Nayara Energy Ltd., as the new sanctions take effect.

• On October 22, the United States imposed sweeping sanctions on Russia’s top oil producers, Rosneft and Lukoil, urging Moscow to agree to an immediate ceasefire. The measures also targeted several subsidiaries of the two energy giants.
• In response, Chinese state-owned oil firms have suspended seaborne purchases of Russian crude following the U.S. actions against Rosneft and Lukoil.