Reliance refusing Sovcomflot oil shipments after sanctions

NEW DELHI, Mar 24 (Reuters): India's Reliance Industries, operator of the world's biggest refining complex, will not buy Russian oil loaded on tankers operated by shipper Sovcomflot (SCF) after recent US sanctions, according to two sources familiar with the matter.

The development adds to oil export problems for Russia as its oil firms may face difficulties finding ships to sell surplus oil after recent Ukrainian drone attacks on the state's refineries. Russian companies are already struggling to collect payments for oil exports due to banking restrictions.

The US has imposed wide-ranging sanctions on Russia since its invasion of Ukraine two years ago. In February, the US imposed sanctions on Sovcomflot and 14 crude oil tankers involved in Russian oil transportation. Reliance, a large buyer of Russian Urals oil, has requested that the new supplies not be shipped by Sovcomflot-operated tankers, according to the sources, who declined to be named due to the sensitivity of the matter.

Sovcomflot and Reliance representatives didn't respond to Reuters' requests for comment. Meanwhile, more Indian refiners plan to shun the use of Sovcomflot vessels, which may weigh on India's import of Russian oil and leave Russia with fewer outlets to place its flagship product.