Going Against The Trend, Reliance Industries To Avoid Purchasing Russian Oil Due To Western Sanctions On Moscow
Reliance Industries is likely to avoid purchasing Russian fuels for its plants due to the western sanctions on Moscow on the backdrop of their ongoing conflict with Ukraine.
The conglomerate acquires Urals crude and straight run fuel oil for its refineries from Russia. On the other hand, it meets its demands for the petrochemical feedstock from the middle-eastern countries and the United States of America (USA).
“Even if we can source some of the feeds (from Russia), probably we will be out of it because of the sanctions,” Reliance’s senior executive Rajesh Rawat was quoted in a report by Reuters.
Indian Oil Corporation Limited (IOC) and Hindustan Petroleum Corporation Limited (HPCL) have already taken up Russia’s offer of discounted crude oil.
HPCL and IOL have bought two million and three million barrels of Russian Urals crude via tenders respectively.
Rawat explained that the majority of oil supplies from Russia to India will be to companies run by the centre.
“So probably, those feed streams will still continue, or may have a lesser impact compared to the private sector players. Because we deal with banks, and also even if we can source some of the feeds (from Russia), probably we will be out of it because of the sanctions,” he further elaborated on the issue.