India’s top importer of Russian oil, the conglomerate Reliance Industries Ltd, says it will abide by Western sanctions, ending several days of speculation about how the company will manage new measures targeting Russia’s two largest oil companies.
Reliance “will be adapting the refinery operations to meet the compliance requirements”, a company spokesperson said in a statement on Friday, while maintaining its relationships with suppliers.
“Whenever there is any guidance from the Indian Government in this respect, as always, we will be complying fully,” the statement added.
On Wednesday, the United States Treasury Office of Foreign Assets Control (OFAC) designated Russian majors Rosneft and Lukoil for the first time as President Donald Trump becomes increasingly frustrated with Russia’s unremitting war on Ukraine.
US Secretary of the Treasury Scott Bessent said the move was the result of Russian President Vladimir Putin’s “refusal to end this senseless war” and encouraged allies to adhere to the new sanctions.
The following day, the European Union adopted its 19th package of measures against Russia, which includes a full transaction ban on Rosneft. The EU has previously said that, starting January 21, it will not receive fuel imports from refineries that received or processed Russian oil 60 days prior to shipping.
Reliance, chaired by billionaire businessman Mukesh Ambani, operates the world’s biggest refining complex in western Gujarat. The company has purchased roughly half of the 1.7-1.8 million barrels per day (bpd) of discounted Russian crude shipped to India, the news agency Press Trust of India reported this week.
In 2024, Reliance signed a 10-year deal with Rosneft to buy nearly 500,000 bpd, Reuters reported at the time. It also buys Russian oil from intermediaries.
Reliance did not offer details on how, exactly, it planned to navigate the sanctions – nor the fate of the 2024 Rosneft agreement – but emphasised it would comply with European import requirements.
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