# India’s Reliance makes rare buy of Russian naphtha, ups fuel oil imports
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-12-02
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Reliance Industries expands Russian naphtha imports amidst Western sanctions
Meta Description: Reliance, the world's largest refining complex, is increasing purchases of Russian naphtha and fuel oil, taking advantage of lower prices and rare trade
URL: https://financedigest.com/indias-reliance-makes-rare-buy-of-russian-naphtha-ups-fuel-oil-importshtml

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By Mohi Narayan

NEW DELHI (Reuters) – India’s Reliance Industries, operator of the world’s largest refining complex, is snapping up Russian refined fuels, including rare purchases of naphtha, after some Western buyers stopped Russian imports, trade flows data from Refinitiv showed.

Western sanctions against Russia over its invasion of Ukraine have led to an emergence of rare trade routes for Russian crude and refined products that were mainly sold to European countries.

[India imported](https://www.financedigest.com/india-eases-russian-oil-buying-in-july-boosts-saudi-imports-trade.html "India eases Russian oil buying in July, boosts Saudi imports -trade") about 410,000 tonnes of naphtha, used for making petrochemicals, in Sept-Oct, the Refinitiv data showed.

Of this figure, Reliance received about 150,000 tonnes from the Russian ports of Ust-Luga, Tuapse and Novorossiysk during the two months, the data showed.

The private refiner did not [buy Russian](https://www.financedigest.com/factbox-who-is-buying-russian-crude-oil-and-who-has-stopped.html "Factbox-Who is buying Russian crude oil and who has stopped") naphtha in 2020 and 2021. Its annual imports of [Russian naphtha were restricted](https://www.financedigest.com/eu-to-restrict-travel-rules-for-russians-split-on-how-far-to-go.html "EU to restrict travel rules for Russians, split on how far to go") to just one parcel in four years to 2019, the data showed.

The [data showed a panamax carrier Okyroe sailing towards India laden with about 59,000 tonnes of Russian](https://www.financedigest.com/russian-retail-sales-fall-deeper-jobless-rate-rises-in-sept-data.html "Russian retail sales fall deeper, jobless rate rises in Sept – data") naphtha.

With European countries shutting down Russia, they need to find outlets for their naphtha,” a trader based in India said, referring to [Russian firms](https://www.financedigest.com/pizza-firm-dp-eurasia-delivers-profit-rise-evaluating-russian-business.html "Pizza firm DP Eurasia delivers profit rise, evaluating Russian business").

Russian naphtha is being sold at [lower premiums to countries](https://www.financedigest.com/eu-countries-consider-lower-gas-price-cap-documents.html "EU countries consider lower gas price cap – documents") like India, two Asian naphtha traders said.

[FUEL OIL](https://www.financedigest.com/oil-spills-and-near-misses-more-ghost-tankers-ship-sanctioned-fuel.html "Oil spills and near misses: more ghost tankers ship sanctioned fuel") IMPORTS SURGE

Reliance, its two plants together capable of processing 1.4 million barrels of oil a day, has emerged as a key buyer of [Russian oil](https://www.financedigest.com/oil-gains-as-russian-supply-cuts-temper-concerns-over-rate-hikes-high-stocks.html "Oil gains as Russian supply cuts temper concerns over rate hikes, high stocks") since Moscow’s February military action in Ukraine.

It also buys straight run fuel oil from countries, including Iraq and Russia, to process at cokers in the two refineries in the western Indian state of Gujarat to [boost refining margins](https://www.financedigest.com/inflation-boosts-jeronimo-martins-q4-profit-but-dents-margins.html "Inflation boosts Jeronimo Martins’ Q4 profit but dents margins").

Reliance’s fuel [oil imports from Russia](https://www.financedigest.com/oil-prices-steady-as-news-of-saudi-russia-meeting-calms-investors.html "Oil prices steady as news of Saudi, Russia meeting calms investors") have surged to a record 3 million tonnes since the beginning of this fiscal year in April, versus about 1.6 million for all of 2021/22, Refinitiv data shows.

Reliance is expected to receive about 409,000 tonnes of [fuel oil](https://www.financedigest.com/oil-prices-rise-as-china-eases-covid-curbs-u-s-storm-fuels-supply-worries.html "Oil prices rise as China eases COVID curbs, U.S. storm fuels supply worries") in December, the data showed.

Reliance did not respond to Reuters emails seeking comments.

(Reporting by Mohi Narayan; Editing by Nidhi Verma and Clarence Fernandez)


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