India’s Reliance Industries Refuses To Purchase Russian Oil From Sovcomflot Shipments Amid US Sanctions

India’s Reliance Industries, operator of the world’s largest refining complex, will not purchase Russia’s oil loaded on tankers operated by shipper Sovcomflot (abbreviated as the SCF) following the latest US sanctions, according to two sources familiar with the matter.

The development adds to oil export issues for Russia as the oil firms may face some difficulties in finding vessels to sell excess oil following the recent Ukrainian drone attacks on the refineries of the state.

Due to banking-related restrictions, Russia’s firms struggle to gather payments for oil exports.

The US has also placed wide-ranging sanctions on Russia when it invaded Ukraine two years back. In February 2024, the US levied sanctions on Sovcomflot and 14 crude oil tankers involved in Russian oil transportation.

Reliance, a big buyer of Russia’s Urals oil, has placed a request that the new supplies not be shipped by Sovcomflot-operated tankers, per the sources, who refused to be named owing to the sensitivity of the matter.

Representatives of Sovcomflot and Reliance did not respond to Reuters’s requests for comment.

In the meanwhile, many other Indian refiners plan on shunning Sovcomflot’s vessel usage, which might weigh on India’s import of Russian oil and thereby, leave Russia with very few outlets to place the flagship product, three sources — who are associated with India’s government and the refining sector — have explained.

Reference: Reuters

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Source: Maritime Shipping News