Russia’s top Indian oil buyer to comply with Western sanctions

Last year, Reliance Industries Ltd signed a woody with Russian large Rosneft to import astir 500,000 barrels per day.

India’s apical importer of Russian oil, the conglomerate Reliance Industries Ltd, says it volition abide by Western sanctions, ending respective days of speculation astir however the institution volition negociate caller measures targeting Russia’s 2 largest lipid companies.

Reliance “will beryllium adapting the refinery operations to conscionable the compliance requirements”, a institution spokesperson said successful a connection connected Friday, portion maintaining its relationships with suppliers.

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“Whenever determination is immoderate guidance from the Indian Government successful this respect, arsenic always, we volition beryllium complying fully,” the connection added.

On Wednesday, the United States Treasury Office of Foreign Assets Control (OFAC) designated Russian majors Rosneft and Lukoil for the archetypal clip arsenic President Donald Trump becomes increasingly frustrated with Russia’s unremitting warfare connected Ukraine.

US Secretary of the Treasury Scott Bessent said the determination was the effect of Russian President Vladimir Putin’s “refusal to extremity this senseless war” and encouraged allies to adhere to the caller sanctions.

The pursuing day, the European Union adopted its 19th bundle of measures against Russia, which includes a afloat transaction prohibition connected Rosneft. The EU has antecedently said that, starting January 21, it volition not person substance imports from refineries that received oregon processed Russian lipid 60 days anterior to shipping.

Reliance, chaired by billionaire businessman Mukesh Ambani, operates the world’s biggest refining analyzable successful occidental Gujarat. The institution has purchased astir fractional of the 1.7-1.8 cardinal barrels per time (bpd) of discounted Russian crude shipped to India, the quality bureau Press Trust of India reported this week.

In 2024, Reliance signed a 10-year woody with Rosneft to bargain astir 500,000 bpd, Reuters reported astatine the time. It besides buys Russian lipid from intermediaries.

Reliance did not connection details connected how, exactly, it planned to navigate the sanctions – nor the destiny of the 2024 Rosneft statement – but emphasised it would comply with European import requirements.

“Reliance is assured its time-tested, diversified crude sourcing strategy volition proceed to guarantee stableness and reliability successful its refinery operations for gathering the home and export requirements, including to Europe,” the institution spokesperson said.

The sanctions besides get arsenic India navigates the fallout from Trump’s tariffs connected Indian exports, which rose to 50 percent starting successful August arsenic a punishment for importing Russian oil. China and India are the world’s largest importers of Russian crude.

Trump has claimed aggregate times implicit the past period that India has agreed to halt buying Russian lipid arsenic portion of a broader commercialized deal, an assertion the Indian authorities has not confirmed.

Neither India’s Ministry of External Affairs nor lipid ministries person responded since the sanctions were announced connected Wednesday.