Reliance Industries Ltd., India’s top private refiner, expressed confidence about its “crude sourcing strategy” amid the cloud over Russian oil imports due to the sanctions announced this week by the United States.
“Reliance is confident that its time-tested, diversified crude sourcing strategy will continue to ensure stability and reliability in its refinery operations for meeting the domestic and export requirements, including to Europe,” a spokesperson of the company said on Friday.
The statement comes two days after the US announced sanctions on Rosneft and Lukoil, two of Russia’s largest oil producers. This was in a bid to pressure President Vladimir Putin into ending the war in Ukraine.
Rosneft and Lukoil together account for an estimated 3.1 million barrels per day (mbpd) of exports, nearly 80% of Russia’s total crude shipments of 3.8–3.9 mbpd.
The company said it is assessing the implications of the latest restrictions imposed by the European Union, the United Kingdom, and the US, while reiterating its commitment to full compliance with international and domestic regulations.
“Whenever there is any guidance from the Indian Government in this respect, as always, we will be complying fully. Reliance has consistently aligned itself with the objectives of ensuring India’s energy security,” said the spokesperson.
Reliance, one of India’s largest refiners, has been a major buyer of Russian crude since Western nations first imposed sanctions in 2022. The company imports 34% oil from Russia and is likely to feel some pressure due to the sanctions. For RIL, each $1 per barrel rise in crude prices could dent Ebitda by 2–2.5%.
Keeping this in mind Reliance plans to reduce or halt imports, including under its large long-term deal with Rosneft. “Recalibration of Russian oil imports is ongoing and Reliance will be fully aligned to GOI (Government of India) guidelines,” a Reliance Industries spokesman told Reuters.
