Lagatar24 Desk
New Delhi: Reliance Industries has significantly cut down on crude oil imports from Russia following the latest US sanctions targeting Russian state oil companies Rosneft and Lukoil. The move comes as Washington continues to pressure India to curb its energy trade with Moscow, especially amid geopolitical tensions and the ongoing war in Ukraine.
Impact of US Sanctions and Strategic Shift
Sources revealed that Reliance, one of India’s leading refiners, took this step after the US declared all transactions with Rosneft and Lukoil as restricted. Other Indian refiners, including Mangalore Refinery and Petrochemicals Ltd (MRPL), have also reduced their Russian oil intake, while HPCL-Mittal Energy Ltd had already halted Russian imports earlier.
To compensate for the decline in Russian supplies, Reliance has increased crude purchases from the Middle East and the US. Oil imports from Saudi Arabia surged by 87%, and imports from Iraq rose by 31%, raising the Middle East’s share in Reliance’s total imports from 26% in September to 40% in October. Imports from the US nearly doubled, reaching 10% of the total volume.
Sharp Decline in Russian Oil Share
In October, Reliance imported around 534,000 barrels of Russian oil per day, marking a 24% drop compared to September. Consequently, Russia’s share in Reliance’s overall crude imports fell from 56% in September to 43% in October, signaling a sharp strategic rebalancing.
Broader Implications for India
Industry experts warn that this reduction could raise India’s crude import costs, as Russian oil was considerably cheaper due to wartime discounts. Increased dependence on US and Gulf oil sources may lead to higher domestic fuel prices in the coming months.
The US has reportedly given companies until November to end all direct dealings with Russian firms, warning of penalties and trade restrictions for non-compliance. Analysts believe most Indian refiners will align with the sanctions to avoid financial risks.
