Reliance Commits to Comply with New Western Sanctions on Russian Oil
Reliance Industries announced on Friday it will fully comply with the latest US and Western sanctions targeting Russian oil and will adjust its refinery operations to meet the new requirements.
Key Takeaways
- Reliance will comply with EU, UK, and US sanctions on Russian oil
- Company will modify refinery operations to meet compliance
- Russian crude accounts for nearly one-third of India’s imports
- Direct purchases from sanctioned firms Rosneft and Lukoil expected to decline
Official Statement and Compliance
The oil-to-retail giant confirmed it is assessing the implications of restrictions announced by the European Union, United Kingdom, and United States on crude oil imports from Russia and refined product exports to Europe.
“We will comply with the EU’s guidelines on the import of refined products into Europe,” an RIL spokesperson said.
The company emphasized its full commitment to maintaining adherence to applicable sanctions and regulatory frameworks.
US Sanctions Details
The US government imposed sanctions on October 22 against Russia’s two largest crude oil producers, Rosneft and Lukoil, prohibiting all American entities and individuals from conducting business with them.
Non-US firms could also face penalties if found dealing with the sanctioned companies or their subsidiaries. The US Treasury Department mandated that all existing transactions involving Rosneft and Lukoil must be wound down by November 21.
Impact on Indian Oil Imports
Russia currently supplies nearly a third of India’s crude imports, averaging around 1.7 million barrels per day (mbd) in 2025. Approximately 1.2 mbd came directly from Rosneft and Lukoil.
Most of these volumes were purchased by private refiners and Nayara Energy, with smaller allocations to state-owned refiners.
According to Sumit Ritolia, Lead Research Analyst (Refining and Modelling) at Kpler, Russian crude flows are expected to remain in the 1.6-1.8 mbd range until November 21. However, direct volumes from Rosneft and Lukoil are likely to decline thereafter as Indian refiners seek to avoid any risk of US sanctions.
