India’s Reliance says it will abide with sanctions on Russian oil purchases

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(The Center Square) – Indian conglomerate Reliance Industries said Friday it will adjust its refining operations to abide with U.S. and European sanctions on purchases of Russian crude oil.

Reliance, India’s largest oil importer, said in a statement posted on X that it is assessing the impact of restrictions announced in recent days by the European Union, United Kingdom and United States. The company said it will fully comply with applicable regulations while maintaining relationships with suppliers.

Both the United States and the EU ramped up pressure this week on Russian and Indian energy companies.

U.S. Treasury Secretary Scott Bessent on Wednesday announced sanctions targeting Russia’s largest oil companies, Rosneft and Lukoil. “Treasury is sanctioning the two largest oil companies that fund the Kremlin’s war machine,” Bessent said. “We encourage our allies to join us in and adhere to these sanctions,” said Bessent.

In August, President Donald Trump slapped an extra 25% tariff on U.S. imports of most Indian goods as a punitive measure for the country buying Russian oil. The levy was on top of reciprocal tariffs of 25%, taking total tariffs on Indian imports to 50%.

Reliance imports crude oil from about 40 countries, including Russia, and then exports some the of the refined products it produces to Europe, the United States and Asia. The company operates the world's largest oil refining complex at Jamnagar, on India’s western coast.

Since Trump imposed punitive tariffs on imports of Indian goods, Reliance and other refiners have increased purchases of crude oil from the United States, Middle East, West Africa, and Azerbaijan, according to industry publications. Since August, Reliance, Indian Oil Corp, and Bharat Petroleum Corp have bought at least nine million barrels of West Texas Intermediate crude oil from U.S. producers.

In the last year, about 35% of India’s oil imports came from Russia, according to India’s Department of Commerce. Before the war in Ukraine, Indian refiners mostly bought oil from Middle Eastern producers under annual deals, but purchases from Russia began increasing in 2021.  

In December 2024, Reliance signed a 10-year deal with Rosneft calling for deliveries of oil totaling about 500,000 barrels per day, with prices set $3 to $4 per barrel below similar grades of crude, according to Reuters.

In its 19^th sanctions package of sanctions against Russia adopted on Thursday, the EU instituted a total ban on Russian LNG and took measures to pressure the shadow fleet.

“We will comply with the EU’s guidelines on the import of refined products into Europe,” Reliance said in its post on X. “Whenever there is any guidance from the Indian Government in this respect, as always, we will be complying fully,” the company said.