Reliance helped secure a 30-day US waiver for Russian oil purchases: report
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Intensive engagement by the leadership of Reliance Industries reportedly helped India secure a 30-day waiver from US sanctions to continue purchasing Russian crude oil, according to a report by Bloomberg.
The waiver followed an executive order issued by US President Donald Trump prohibiting India from buying oil from Russia.
The decision allowed Indian companies to continue purchasing Russian crude for a limited period despite the restrictions.
India has been importing discounted oil from Russia since the outbreak of the war in Ukraine, which lowered global prices and encouraged increased purchases by Indian refiners.
Opposition leaders and strategic analysts in India have questioned the autonomy of the government’s foreign policy after the United States set limits on India’s oil imports. Critics of Prime Minister Narendra Modi have argued that accepting US conditions restricts India’s energy choices.
While the ruling Bharatiya Janata Party described the waiver as a diplomatic success for the Modi government, Bloomberg reported that commercial engagement by Reliance played a key role in securing the temporary relief.
Reports indicate that Indian companies resumed purchases of Russian crude after the waiver was announced. Indian Oil Corporation and Reliance were among the companies that bought about 30 million barrels of Russian oil from the spot market.
Meanwhile, Trump recently announced a proposed $300 billion refinery investment in Texas involving Reliance, describing it as the largest investment in US history. However, analysts have questioned the figure, noting that Reliance’s Jamnagar refinery in Gujarat, which processes about 1.4 million barrels per day, cost around $6 billion to build.
According to reports, the proposed refinery in Texas could have a capacity of about 160,000 barrels per day and may cost between $4 billion and $5 billion to construct. Industry reports suggest the project is still under discussion and that multiple companies may be involved.
Reliance has also reportedly secured a licence from the United States to refine crude from Venezuela, after Washington permitted limited sales of Venezuelan oil through traders earlier this year.