Indian non-public refiner Nayara Power, part-owned by Russia’s Rosneft, has bought Russian oil after a niche of a 12 months, shopping for about 1.8 million barrels of Urals from dealer Trafigura, two commerce sources mentioned and Refinitiv information reveals.
Indian firms are snapping up Russian oil as it’s obtainable at a deep low cost after some firms and international locations shunned purchases from Moscow as a consequence of sanctions over its invasion of Ukraine.
On Wednesday Indian Oil Corp, the nation’s high refiner, additionally purchased 3 million barrels of Russian oil by way of a young for Might loading from dealer Vitol, merchants mentioned. That is the second buy of Russian oil by IOC this month.
India, the world’s third-biggest shopper and importer of oil has additionally not banned Russian oil imports, not like a number of Western international locations.
Nayara’s deal, struck after Russia launched what it calls a “particular operation” in Ukraine on Feb. 24, includes use of Liberia-flagged aframax Moskovsky Prospect, managed by a unit of Russia’s state-run delivery agency Sovcomflot, Refinitiv information present.
Sovcomflot was blacklisted by the USA final month. Britain and Canada additionally banned vessels flagged, operated or owned by Russia from docking at their ports.
Nayara, through which dealer Trafigura and Russia’s VTB Financial institution additionally has a stake, operates a 400,000 barrels per day refinery at Vadinar in western Gujarat state, and beforehand purchased Urals in March 2021, based on Refinitiv information.
Marshall Island-flagged Freud, managed by TMS Tanker Ltd and carrying about 1.14 million barrels of Urals, will attain Vadinar on March 30, whereas Moskovsky Prospect loaded with 725,380 barrels is predicted to reach on April 17, Refinitiv movement reveals.
No response was obtainable from Svocomflot, whereas Trafigura and Nayara didn’t touch upon the deal citing confidentiality.
“Like another refinery, Nayara Power has ongoing crude sourcing agreements to optimise its crude basket with an intention to attain the best choice for our refinery,” it mentioned.
Trafigura mentioned it will adjust to its authorized obligation beneath time period agreements signed previous to the struggle in Ukraine.
India not often purchased Russian oil previously as a consequence of excessive freight prices.
Oil Minister Hardeep Singh Puri final week mentioned India was in talks with Russian authorities to purchase oil and was evaluating points associated to insurance coverage, freight and cost.
India has known as for an finish to violence in Ukraine however avoided outright condemnation of Russia, with which it has long-standing political and safety ties.
Earlier this month, Hindustan Petroleum additionally purchased Russian oil on delivered foundation at deep reductions by means of tenders.
Whereas state-run refiners have purchased Russian oil at deep reductions by means of tenders, for Nayara the low cost on oil purchases is “not a lot”, the sources mentioned.
This story has been printed from a wire company feed with out modifications to the textual content. Solely the headline has been modified.
Supply: Live Mint