© Reuters. FILE PHOTO: Workers take a break in front of an advertisement for Reliance Industries Limited at a construction site in Mumbai, India, March 2, 2016. REUTERS/Shailesh Andrade
NEW DELHI (Reuters) – India’s Reliance Industries Ltd., the operator of the world’s largest oil refinery, may refrain from buying oil after Western sanctions against Moscow over its invasion of Ukraine, a senior official said. Its factories buy Russian fuel.
“Even if we could source some feed (from Russia), we could be eliminated because of sanctions,” Rajesh Rawat, senior vice president and head of operations, said at an industry event on Wednesday.
Reliance buys Urals crude oil and straight-run fuel oil from Russia for its refineries. The private refinery buys its petrochemical feedstocks mainly from the Middle East and the United States.
Sanctions on Russia have prompted many companies and countries to shun its oil, pushing Russian crude to record discounts.
In India, most of the oil supplies from Russia go to state-run companies, Rawat said.
“So these information flows are likely to continue, or they may be less impactful compared to private sector players. Because we deal with banks and even if we can procure some sources (from Russia), we may quit it,” Rawat said at the Asia Refining and Petrochemical Summit.
Since Russia’s invasion of Ukraine began on February 24, India’s largest refiner, Indian Oil Corp, has bought 3 million barrels of Russian Urals crude, while Hindustan Oil Corp has bought 2 million barrels through tenders.
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