Reliance Industries Limited (RIL), one of India's largest oil importers, announced on Friday that it's thoroughly assessing the implications of new sanctions imposed by the European Union (EU), United Kingdom (UK), and United States (US) on Russian crude oil and refined products. These sanctions, a response to Russia's ongoing military actions in Ukraine, aim to largely disconnect Russian energy companies from Western financial markets. RIL currently holds a long-term agreement to purchase approximately 500,000 barrels of crude oil per day from Rosneft, acquiring additional volumes through other channels.
Reliance's Statement on Sanctions
In its statement, Reliance noted, "We've taken note of the recently announced sanctions by the EU, UK, and US on imports of crude oil from Russia and exports of refined products to Europe. Reliance is currently evaluating the impact and new compliance requirements. " The company clarified its intent to adhere to EU guidelines for importing refined products into Europe.
Commitment to Compliance and Energy Security
Reliance reiterated its commitment to fully comply with any future directives from the Indian government regarding this matter. The company emphasized its consistent objective of ensuring India's energy security. Reliance also affirmed its dedication to abiding by all applicable sanctions and regulatory norms, stating it would adapt its refinery operations to align with new regulations. The company mentioned that supply contracts in the industry typically evolve to adapt to market and regulatory changes, and Reliance will implement these adjustments while maintaining relationships with its suppliers.
Ensuring Supply and Domestic Needs
Reliance expressed confidence that its diverse and time-tested crude oil sourcing strategy would maintain stable and reliable refinery operations. This approach aims to fulfill both domestic requirements and export demands, including those from Europe. The US sanctions were also described as part of a strategy to compel Russia to accept an immediate ceasefire, with President Trump reportedly canceling a summit meeting with Russian President Vladimir Putin.
