Indian private refiner Nayara Energy, part-owned by Russia's Rosneft, has purchased Russian oil after a Urals a year, buying about 1.8 million barrels of Urals from trader Trafigura, two trade sources said and Refinitiv data shows.
Indian companies are snapping up Russian oil as it is available at a deep discount after some companies and countries shunned purchases from Moscow due to sanctions against Moscow for its invasion of Ukraine.
The deal, struck after Russia launched its "special operation" in Ukraine on Feb. 24, involves use of Liberia-flagged aframax Moskovsky Prospect, managed by a unit of Russia's state-run shipping firm Sovcomflot, Refinitiv data show.
Sovcomflot was blacklisted by the United States last month.
Britain and Canada also banned vessels flagged, operated or owned by Russia from docking at their ports.
Nayara, in which trader Trafigura and Russia's VTB Bank also has a stake, operates a 400,000 barrels per day refinery at Vadinar in western Gujarat state, and previously bought Urals in March 2021, according to Refinitiv data.
Marshall Island-flagged Freud, managed by TMS Tanker Ltd and carrying about 1.14 million barrels of Urals, will reach Vadinar on March 30, while Moskovsky Prospect loaded with 725,380 barrels is expected to arrive on April 17, Refinitiv flow shows.
India, the world's third-biggest oil importer and consumer, rarely bought Russian oil in the past due to high freight costs.
Oil Minister Hardeep Singh Puri last week said India was in talks with Russian authorities to buy oil and was evaluating issues related to insurance, freight and payment.
Asian buyers can legally trade Russian oil, but the United States banned Russian oil imports following Moscow's invasion of Ukraine, while the European Union is divided over a possible embargo.
State-run refiners Indian Oil Corp and Hindustan Petroleum have bought Russian oil on delivered basis at deep discounts through tenders. In contrast, for Nayara the discount on oil purchases is "not much", the sources said.
"The commercial details are confidential, and we will not be able to comment on the same," Nayara said in a statement.
"Like any other refinery, Nayara Energy has ongoing crude sourcing agreements to optimise its crude basket with an aim to achieve the best option for our refinery," it said.
No response was available from Svocomflot.
Trafigura declined to comment but said it would comply with its legal obligation under term agreements signed prior to the war in Ukraine.
(Reporting by Nidhi Verma; Editing by Stephen Coates)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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