Reliance Industries Limited
Reliance Industries Ltd, which is the largest oil buyer in India from Russia, is now going to change its Russian oil import policy. The company has said that it will adjust its oil imports according to the new guidelines of the Government of India. Reliance spokesperson said on Thursday, recalibration of oil imports from Russia is going on and Reliance will completely adjust as per the government guidelines.
This step has come at a time when America and Europe have imposed new strict sanctions on Russia. In these sanctions, Russia’s two big oil companies Lukoil and Rosneft have been targeted. As of 10:48 am on Thursday, October 23, Reliance Industries shares were trading at ₹1,463.85, down ₹1.30.
New action by America and Europe
US President Donald Trump on Wednesday imposed new sanctions on Russia related to the Ukraine war. He has taken direct action against Russian oil companies Lukoil and Rosneft. The European Union has also approved the 19th sanctions package on Russia, which includes a ban on the import of Russian Liquefied Natural Gas (LNG).
Britain had also imposed sanctions on these two Russian companies last week. Now, after the US sanctions, Indian government oil companies are reviewing their documents to determine whether any of their deals are linked to these two companies.
US Treasury Secretary Scott Besant said, because President Putin is refusing to end this unnecessary war, we are imposing sanctions on Russia’s two largest oil companies, which directly fund the Kremlin’s war machine. We also appeal to our partner countries to follow these sanctions.
surge in oil prices
After the American sanctions, there was an immediate impact on the prices of crude oil. The price of Brent crude oil increased by more than two dollars per barrel to almost $64 per barrel. Trump told reporters at the White House on Wednesday that he had canceled a meeting with Russian President Putin in Hungary because now was not the right time. He also said that he hopes that these sanctions will not have to be implemented for long.
Trump had earlier also imposed 25% additional tariff on India because India was buying oil from Russia at a discount. However, China, which is a big buyer of Russia, was not imposed such punishment.