India’s Reliance Industries Ltd, operator of the world’s largest refining complex, may prevent Russian fuels from being bought for its factories following Western sanctions against Moscow over its invasion of Ukraine, a senior company official said.
“Even if we can get some of the feeds (from Russia) we will probably be out because of the sanctions,” Rajesh Rawat, senior vice president and business head cracker, told an industry event on Wednesday.
Reliance buys crude and direct fuel oil from the Urals for its refineries from Russia. The private refinery purchases its petrochemical feedstock primarily from the Middle East and the United States.
Sanctions against Russia have prompted many companies and countries to shun its oil, pushing Russian crude to record discounts.
Rawat said that in India, most of the oil supplies from Russia go to the state-owned companies.
“So probably those feed streams will still continue, or they could have a lesser impact compared to the private sector players. Because we are dealing with banks, and also if we can source some of the feeds (from Russia) , we will probably get out because of the sanctions,” Rawat told the Asia Refining and Petrochemical Summit.
Since the Russian invasion of Ukraine began on Feb. 24, India’s largest refinery Indian Oil Corp. has bought 3 million barrels of Russian Ural crude oil and Hindustan Petroleum has bought 2 million barrels of oil through tenders.