Reliance rejects reports of Iranian crude purchase

Reliance Industries on Thursday said it has not bought crude oil of Iranian origin since the US temporarily removed sanctions to ease pressure on prices that followed the US-Israeli war on Iran.

In a statement, Reliance termed reports of it buying Iranian oil as baseless and incorrect.

It said it "categorically rejects recent media reports that the company has purchased crude oil of Iranian origin."

The government earlier this week said resuming the buying of Iranian oil will be based on techno-commercial feasibility.

Historically, India was a major buyer of Iranian crude, importing significant volumes of Iranian Light and Heavy grades due to strong refinery compatibility and favourable commercial terms.

Following sanctions tightening in 2018, imports ceased from May 2019, with volumes replaced by Middle Eastern, US and other grades. At peak, Iranian crude accounted for 11.5% of India's total imports.

Last weekend, the US waived sanctions on the purchase of Iranian oil at sea for 30 days in its latest attempt to ease oil prices that have been driven up by the US-Israeli war on Iran. An estimated 140 million barrels of Iranian oil are on vessels at sea.

While the waiver allowed countries to purchase those barrels, it is unclear how payments will be made.

Iran remains cut off from SWIFT (Society for Worldwide Interbank Financial Telecommunication) - a global messaging network used by banks and financial institutions to securely send and receive information about financial transactions.

Industry sources said the last purchases from Iran were made in Euros using a Turkish bank as a go-between, but that option no longer exists.

Iran was cut off from the SWIFT system in March 2012 following European Union sanctions over its nuclear programme, with the move forcing the disconnection of multiple Iranian banks and severely restricting global financial transactions.

Further disruptions occurred in 2018, after the United States reimposed sanctions, leading to renewed suspension of several Iranian banks from the network, which significantly constrained Tehran's ability to conduct international trade, receive oil payments and access foreign currency reserves.

(Except for the headline, Fortune India has not edited the content of this PTI report.)