Reliance Granted One-Month US Concession to Import Rosneft Oil

Post by : Saif Nasser

India’s Reliance Industries Ltd has received a special one-month concession from the United States to continue receiving oil cargoes from Russian producer Rosneft, according to sources familiar with the matter. This comes despite the sanctions imposed by Washington on Rosneft and Lukoil earlier this year.

The US had earlier set a deadline of November 21 for companies to wind down transactions with the two Russian energy firms. Reliance, which has a long-term agreement with Rosneft to purchase 500,000 barrels of oil per day for its massive 1.4 million bpd refining complex, is now allowed to process certain pre-existing oil cargoes under this concession.

Since November 22, Reliance has received about 15 cargoes of Russian oil, which the company says are “pre-existing transactions being wound down in a sanctions-compliant manner.” The firm loaded its final cargo under the Rosneft deal on November 12 and continues to process Russian oil at its India-focused 660,000 bpd refinery. This approach allows Reliance to maintain fuel sales to the European Union from its 704,000 bpd export-focused refinery.

Trade data indicates that Reliance is scheduled to receive one cargo each from Russian trader RusExport in December and January. The company has emphasized that these shipments comply with sanctions while meeting its operational needs.

India has emerged as the world’s largest buyer of seaborne Russian crude since Russia’s invasion of Ukraine, though there has been increasing pressure from the US to reduce imports. In December, India’s Russian oil imports are expected to average between 1.2 to 1.5 million bpd, down from 1.77 million bpd in November.

This concession from the US helps Reliance manage its fuel supply chain smoothly while navigating complex international sanctions. It also supports the company’s efforts to continue supplying refined oil to the EU without disruption.