Reliance Industries Ltd (RIL) has received a one-month concession from the United States that allows it to continue receiving crude oil cargoes supplied by Russia’s state-owned oil major Rosneft. The temporary approval comes even as the US tightens sanctions on Russian energy companies following the Ukraine conflict.
The concession enables Reliance to take delivery of oil shipments that were contracted before fresh sanctions came into force. These are not new purchases but cargoes linked to existing agreements that are being gradually wound down in line with regulatory requirements, according to sources familiar with the matter.
In October, the US imposed sanctions on major Russian oil producers, including Rosneft and Lukoil, and asked companies to end transactions with them by November 21. However, the one-month waiver allows Reliance to continue receiving some Rosneft supplies beyond that deadline. Since November 22, the company has reportedly received around 15 cargoes of Russian crude under earlier commitments.
Reliance has a long-term supply agreement with Rosneft for about 500,000 barrels of crude oil per day. This oil is mainly used at its Jamnagar refining complex in Gujarat, which has a total capacity of about 1.4 million barrels per day and is among the largest refinery hubs in the world.
To manage sanctions compliance, Reliance has adjusted how it processes Russian crude. The company has said that Russian oil received after November 20 is being refined at its domestic-focused refinery unit. Fuel exports, especially to Europe, are being produced using non-Russian crude to meet European Union rules.
From January 21, the EU will not accept fuel made at refineries that have processed Russian crude within the previous 60 days. To avoid disruption to exports, Reliance has stopped using Russian oil at its export-oriented refinery in the Jamnagar Special Economic Zone and is sourcing alternative crude grades.
India has been a major buyer of Russian oil since the start of the Ukraine war, taking advantage of discounted prices. However, India’s imports of Russian crude are expected to decline in December as refiners respond to tighter sanctions and changing trade rules.
The US Treasury has not officially commented on the concession granted to Reliance.