RIL to adjust refinery operations after US sanctions Russian oil firms

Reliance also agreed to follow EU guidelines on imports of refined oil products into Europe amid widening sanctions on Russian crude trade

Billionaire Mukesh Ambani-led Reliance Industries Ltd (RIL) will adapt refinery operations to meet “compliance requirements” as the United States imposed sanctions on two major Russian oil companies, the company said in a statement on Friday.

 

US sanctions on Rosneft, Lukoil prompt compliance review  

Aimed at pressuring Russia to end its war with Ukraine, US President Donald Trump announced sanctions on Rosneft and Lukoil, which collectively export around 3 million barrels per day (bpd) of crude oil.

 

Responding to the recent sanctions by the West on Russia, Reliance, which has a long-term deal to buy nearly 500,000 bpd of crude oil from state-owned Rosneft, said supply contracts evolve to reflect “changing regulatory conditions.”

 

 

“The company remains fully committed to maintaining its longstanding and impeccable record of adherence to applicable sanctions and regulatory frameworks and will be adapting refinery operations to meet the compliance requirements,” said RIL.

 

Reliance operates the world’s largest integrated, single-site refinery complex in Jamnagar, Gujarat, with a crude processing capacity of 1.4 million barrels per day (bpd).

 

RIL is India’s largest importer of Russian crude 

RIL is the largest importer of Russian oil among Indian refining companies. According to maritime intelligence firm Kpler, it imported 702,000 barrels of crude oil from Russia in September, compared to collective imports of around 500,000 bpd by state-run Indian refiners.

 

RIL to follow EU refined oil import rules 

Reliance also agreed to comply with the European Union’s guidelines on the import of refined products into Europe. Under the EU’s 18th sanctions package announced in July, the bloc banned imports of refined oil products derived from Russian crude into Europe.

 

“We have noted the recent restrictions announced by the European Union, United Kingdom, and the United States on crude oil imports from Russia and exports of refined products to Europe. Reliance is currently assessing the implications, including the new compliance requirements,” said RIL, adding that it will fully comply with Indian government directives as well, if issued.

 

Company confident of maintaining stable supply 

Reliance said it would address the recent sanctions while maintaining relationships with its crude oil suppliers. “Reliance is confident that its time-tested, diversified crude sourcing strategy will continue to ensure stability and reliability in its refinery operations for meeting domestic and export requirements, including to Europe,” the company said.

 

Compared to the mere 0.2 per cent share of Russia in India’s total crude imports in 2022, New Delhi currently sources around 35 per cent of its oil from Moscow due to discounts.