Key Takeaways
- Reliance Industries cut Russian crude share from 56% to 43% in October
- Overall Russian crude imports dropped 24% from sanctioned entities
- US sanctions on Rosneft and Lukoil triggered the reduction
- Company shifted to Middle East and US suppliers to compensate
Mukesh Ambani-led Reliance Industries, India’s largest buyer of Russian crude, has significantly reduced imports following US sanctions. The company cut Russian crude’s share in its overall basket by 13% in October compared to September.
Sanctions Drive Import Reduction
The move comes after US sanctions targeted Moscow’s major oil firms Rosneft and Lukoil, coupled with ongoing pressure on India to reduce Russian oil purchases. Ahead of sanctions taking effect on November 21, Reliance imported 534,000 barrels per day in October – 23% below the April-September average.
Russia’s share in Reliance’s crude slate fell sharply to 43% in October from 56% in September. The US has also imposed a 25% additional tariff on Indian imports due to India’s status as a major Russian oil buyer.
Export Numbers Show Steep Decline
According to Kpler data, Russia’s crude exports to India averaged 1.19 million barrels per day in the week ending October 27. This represents a significant drop from 1.95 million bpd recorded over the previous two weeks.
Exports from Rosneft declined to 0.81 million bpd from 1.41 million bpd the previous week. Lukoil recorded zero shipments to India during that period, down from 0.24 million bpd earlier.
Reliance Commits to Compliance
Reliance Industries has formally committed to complying with all restrictions announced by the European Union, United Kingdom, and United States regarding crude oil imports from Russia and refined product exports to Europe.
The company stated it is currently assessing the implications of these sanctions, including new compliance requirements. “Whenever there is any guidance from the Indian Government in this respect, as always, we will be complying fully,” Reliance said in an official statement.
Shift to Alternative Suppliers
To compensate for reduced Russian imports, Reliance increased purchases from Middle Eastern suppliers. Saudi supplies rose 87% and Iraqi volumes increased 31%, raising their combined share in Reliance’s crude basket to 40% in October from 26% in September.
Imports from the United States nearly doubled, accounting for approximately 10% of Reliance’s total crude intake compared to 5% in September.
The full impact of these changes may become more apparent in coming months, as Russian cargoes received in October were likely ordered in August due to standard shipping timelines.
EU Provides Export Clarification
The European Union has outlined conditions allowing refiners to export fuels to Europe even while importing Russian crude. According to EU clarification, exports are permitted if Russian crude can be segregated and processed separately, with proof that exported petroleum products come from production lines using non-Russian oil.
For refineries unable to segregate Russian crude, exports to the EU remain possible by demonstrating that no Russian oil has entered that production line in the past 60 days.
