Reliance Industries Limited, which owns India’s largest refinery complex in Jamnagar, said it is currently assessing the implications of sanctions announced by the European Union, the United Kingdom, and the United States on crude oil imports from Russia.
Reliance, which has a 25-year term contract with Russia’s Rosneft to buy up to 500,000 barrels per day of crude, also stated that it will comply with the EU’s guidelines on the import of refined products into Europe. According to data, Russia currently supplies about 35% of India’s total crude imports, most of which are purchased by private refiners Reliance Industries Ltd and Nayara Energy.
“We have noted the recent restrictions announced by the European Union, United Kingdom and the United States on crude oil imports from Russia and export of refined products to Europe. Reliance is currently assessing the implications, including the new compliance requirements. We will comply with the EU’s guidelines on the import of refined products into Europe. Whenever there is any guidance from the Indian Government in this respect, as always, we will be complying fully. Reliance has consistently aligned itself with the objectives of ensuring India’s energy security,” said a spokesperson for Reliance Industries Limited.
The US government, on October 22, imposed sanctions on Russia's two largest crude oil producers, Rosneft and Lukoil, in an effort to compel Moscow to end the war in Ukraine. The move follows similar actions by the United Kingdom, which sanctioned the same two Russian oil giants earlier in the week. The European Union has also approved its 19th package of sanctions against Russia, including a ban on imports of Russian liquefied natural gas (LNG) starting January 2027.
The company said Reliance remains confident that its time-tested and diversified crude sourcing strategy will continue to ensure stability and reliability in refinery operations, enabling it to meet both domestic and export requirements, including those to Europe.
“The Company remains fully committed to maintaining its longstanding and impeccable record of adherence to applicable sanctions and regulatory frameworks and will be adapting the refinery operations to meet the compliance requirements,” said the spokesperson.
In the past, India has avoided importing oil from countries such as Iran and Venezuela after the US imposed sanctions on them. The latest sanctions mean that companies and financial institutions engaging in transactions with Rosneft and Lukoil risk attracting secondary sanctions from the US.
“US sanctions targeting Rosneft and Lukoil — two key pillars of Russia’s oil sector — are poised to disrupt established export flows and push global crude markets into a recalibration phase. The two firms together contribute over 5 mbd in output and supply roughly 2 mbd of seaborne crude. With China and India together importing nearly 2.8 mbd of Russian seaborne crude, a seamless replacement appears difficult, potentially leading to inventory drawdowns and refinery run cuts in Asia. Market participants are awaiting further clarity ahead of the upcoming US–China summit,” said Muyu Xu, senior crude oil analyst at global commodity markets data and analytics provider Kpler.
Previously, the petroleum ministry maintained that India’s imports of Russian crude were legitimate, as the oil itself was not sanctioned, though it was subject to a price cap. The ministry has reiterated that Indian companies source oil from wherever they can get the best deal, provided it is not prohibited.
When Russia invaded Ukraine in February 2022, Moscow’s share in India’s oil imports was less than 2%. It now constitutes more than 30% of India’s total crude imports, largely due to discounts. However, discounts on Russian oil have narrowed considerably compared to three years ago.
