New Delhi: Reliance Industries Ltd is reassessing its crude oil imports from Russia and will remain fully aligned with government’s guidelines, the company said in a statement after US announced sanctions on two major Russian oil companies.
“Recalibration of Russian oil imports is ongoing, and Reliance will be fully aligned with Government of India (GOI) guidelines,” a company spokesperson told Reuters, responding to a query on whether Reliance plans to reduce Russian crude purchases.
Reliance, one of India’s largest private conglomerates, currently imports nearly 500,000 barrels of Russian oil per day under a long-term deal with Rosneft. The company also sources Russian crude from the spot market for its Jamnagar refinery, the world’s largest refining complex with a capacity to process 1.4 million barrels a day.
US sanctions target Rosneft and Lukoil
The decision to recalibrate comes after the United States imposed sanctions on Russia over the ongoing Ukraine conflict. US President Donald Trump announced measures against major Russian oil firms, including Rosneft and Lukoil, the first such sanctions of his administration.
The US Treasury Department has set a November 21 deadline for companies to end business with these Russian producers. Even before the sanctions were formalised, Reliance had been weighing the possibility of halting Russian oil purchases for one of its export-oriented refineries in anticipation of the European Union’s upcoming ban, effective January, on refined products made from Russian crude.
India eyes smoother trade with the US
India’s other refineries are also expected to scale back Russian imports in light of the new US restrictions. Industry experts say the move could remove a key obstacle in India’s ongoing trade negotiations with the United States, where several Indian exports currently face tariffs as high as 50 per cent, partly linked to India’s continued energy dealings with Moscow.
Apart from Reliance, Nayara Energy, in which Rosneft holds a significant stake, continues to source oil from Russian state producers.