Reliance Ramps Down Russian Oil Shipments Amid Western Sanctions Fears

Mukesh Ambani-led Reliance Industries has reportedly reduced its purchases of Russian crude after the US imposed sanctions on Russian oil firms Rosneft and Lukoil. Data shows the conglomerate, India’s largest buyer of Russian oil, imported just 534,000 barrels per day (bpd) in October, down 24% from September and 23% below the April–September average.

The figures were reported by The Economic Times (ET), citing data from global real-time analytics provider Kpler. ET also noted that Reliance’s share of Russian crude in its overall oil imports fell to 43% in October, compared to 56% in September.

This development follows new sanctions imposed by the US Department of the Treasury on Rosneft Oil Company and Lukoil OAO, two of Russia’s biggest oil producers, accused of financing Moscow’s war in Ukraine. Rosneft accounts for around 6% of global oil output and nearly half of Russia’s total production.

The sanctions came after President Trump said his talks with Russian President Vladimir Putin had failed to make progress towards a ceasefire.

Reliance Industries later said, “We have noted the recent restrictions announced by the European Union, the United Kingdom, and the United States on crude oil imports from Russia and the export of refined products to Europe. Reliance is currently assessing the implications, including the new compliance requirements.”

The company added that it would comply with the EU’s guidelines on refined product imports into Europe. “Whenever there is any guidance from the Indian government in this respect, as always, we will comply fully,” a Reliance spokesperson said.

However, according to the latest ET report, the October decline was not triggered by the latest US sanctions but by earlier uncertainties linked to Washington’s pressure campaign, new tariffs on Indian exports that took effect in late August, and EU sanctions announced in July that are set to come into force in January.

Russian cargoes received in October were ordered as early as August, since shipments are typically booked about a month before loading, with tankers taking another month to reach India.

The new US sanctions have created a more immediate challenge for Reliance Industries Ltd (RIL), as Rosneft supplies the Indian refiner roughly 500,000 barrels per day under a long-term contract. Continued imports from a sanctioned company also risk triggering secondary sanctions.

The company plans to halt crude imports from sanctioned Russian entities once the US sanctions wind-down period ends on November 21, ET reported, citing sources. RIL may consider resuming Russian oil purchases if restrictions are eased in the future, the report added.