US Sanctions May Hit Reliance’s Russian Oil Imports; State Refiners To Continue Via Traders
This comes as the US sanctioned Russia’s two largest oil companies, Rosneft and Lukoil, for Moscow's lack of serious commitment to a peace process to end the war in Ukraine.
United States’ sanction against the two Russian oil companies are likely to impact Reliance Industries' crude imports from Russia, however state-run refiners may continue purchases through intermediary traders for now, PTI reported on Thursday.
As per the report, industry sources indicated that public-sector units are assessing compliance risks but are unlikely to halt Russian crude flows immediately.
This comes as the US sanctioned Russia’s two largest oil companies, Rosneft and Lukoil, for Moscow's lack of serious commitment to a peace process to end the war in Ukraine.
Rosneft is a vertically integrated energy company specialising in the exploration, extraction, production, refining, transport, and sale of petroleum, natural gas, and petroleum products. Lukoil engages in the exploration, production, refining, marketing, and distribution of oil and gas in Russia and internationally.
Reliance had in December 2024 signed a term deal with Russia's Rosneft - now sanctioned - to import as much as 500,000 barrels per day of Russian oil for 25 years. It also buys oil from intermediaries, PTI reported.
Together, Rosneft and Lukoil export approximately 3.1 million barrels of oil per day, with Rosneft alone accounting for 6% of global oil production and enarly half of Russia’s output.
Russian oil is bought both by private sector firms - Reliance Industries Ltd and Rosneft-backed Nayara Energy - and state-owned refiners Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), Hindustan Petroleum Corporation Ltd (HPCL), Mangalore Refinery and Petrochemicals Ltd and HPCL-Mittal Energy Ltd (HMEL), PTI said.
Notably, The curbs marks a U-turn for President Donald Trump, who had held off on major sanctions and announced earlier this month that he would meet Putin in Europe in the coming weeks. Washington has pressured Russian energy purchasers like India and China to cut imports to strain the Kremlin's finances and force a ceasefire in Ukraine.
(With inputs from PTI)
