Reliance Industries to Halt Russian Oil Imports Amid U.S. Sanctions on Rosneft

Reliance Industries Ltd (RIL) will stop importing crude oil from Moscow after the United States imposed sanctions on Russian oil major Rosneft, according to reports.

Reliance, India’s largest private refiner, had a long-term deal spanning 25 years to purchase up to 500,000 barrels per day (bpd) of crude from Rosneft, making it one of the biggest buyers of Russian oil. The company has reportedly begun winding down purchases following the new U.S. sanctions.

According to PTI, while Reliance is ceasing imports of Russian crude, state-run refineries are likely to continue buying oil from Moscow through intermediary traders for the time being.

Reliance Shifts Focus to West Asian Suppliers

A Bloomberg report indicated that Reliance has begun sourcing crude oil from West Asia, placing new orders with suppliers in Iraq and Qatar. The company is believed to have recently purchased around 2.5 million barrels from the region, reflecting efforts to diversify supply chains amid rising pressure to curb Russian imports.

Reliance remains India’s single largest private buyer of Russian crude, though the company’s latest move signals a major strategic realignment.

U.S. Pressures India and China to Cut Russian Oil Dependence

The Trump administration has urged major trading partners, including India and China, two of the largest importers of Russian crude, to reduce their oil purchases from Russia.

President Donald Trump recently claimed he had received assurances from India to limit its reliance on Russian oil. He also said he plans to raise the issue of China’s Russian oil imports during his upcoming meeting with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) Summit in South Korea next week.

U.S. and Allies Tighten Sanctions on Russia’s Energy Sector

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed additional sanctions on Rosneft Oil Company and Lukoil OAO, two of Russia’s largest oil producers. The U.S. accuses them of funding Moscow’s war in Ukraine.

Rosneft accounts for roughly 6% of global oil production and half of Russia’s total output, according to the BBC.

The sanctions were announced a day after President Trump said he failed to make progress on a ceasefire during talks with Russian President Vladimir Putin. “Every time I speak to Vladimir, I have good conversations and then they don't go anywhere,” Trump remarked.

U.S. Treasury Secretary Scott Bessent said the new measures were necessary due to “Putin’s refusal to end this senseless war.”

Europe and Allies Follow Suit

The United Kingdom also imposed sanctions on Rosneft and Lukoil. Chancellor Rachel Reeves stated there is “no place for Russian oil on global markets.” Meanwhile, the European Union approved its 19th sanctions package against Russia, including a ban on Russian liquefied natural gas (LNG) imports and travel restrictions on Russian diplomats.

EU Commission President Ursula von der Leyen said the sanctions send “a clear signal from both sides of the Atlantic that we will keep up collective pressure on the aggressor.”