India shifts from Russian to Asian oil - Bloomberg
India shifts from Russian to Asian oil (photo: Getty Images)
Indian company Reliance Industries is gradually increasing purchases of Middle Eastern oil and is ready to place more orders in the near future, Bloomberg reports.
According to traders familiar with the matter, the company has purchased at least 2.5 million barrels of oil, including Iraq's Basrah Medium, as well as Al Shaheen and Qatar Land.
Reliance has also investigated the availability of oil from the region with quality similar to Russian crude.
Reliance has reached out to a large number of potential counterparties regarding the availability of oil from the region with quality comparable to Russian supplies, the traders said. The company has typically been the largest buyer of Russian crude in India, relying on those flows as the basis of its operations.
Background
In recent months, the United States has been pressuring India to limit imports of Russian crude oil as part of efforts to end the war in Ukraine.
Earlier this month, US President Donald Trump said the South Asian nation had agreed to stop all oil purchases from Russia, although New Delhi did not confirm his remarks. Local refineries have generally stated that they will reduce, but not halt, purchases from the OPEC+ producer.
Half of the tariffs imposed by the US on Indian goods are a response to the country's continued purchases of Russian oil. According to American officials, revenues from energy exports enable Russia to finance its war against Ukraine.
Following sanctions and the withdrawal of Western countries from buying Russian oil, India became the largest buyer of Russian crude sold at a discount.
Against this backdrop, Trump said he intends to maintain tariffs on Indian imports as long as the country continues to buy Russian oil.
