Reliance Industries says assessing implications of EU, UK, and US curbs on Russian crude imports

Reliance Industries has said that they are assessing the implications of restrictions placed on imports of Russian crude by the European Union, United States, and the United Kingdom.

As per a Reliance spokesperson, “We have noted the recent restrictions announced by the European Union, United Kingdom and the United States on crude oil imports from Russia and export of refined products to Europe. Reliance is currently assessing the implications, including the new compliance requirements."

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

This statement comes in the wake of US President Donald Trump claimed that Indian Prime Minister Narendra Modi has told him that India "was not going to buy much oil from Russia"

“Reliance has consistently aligned itself with the objectives of ensuring India’s energy security. The Company remains fully committed to maintaining its longstanding and impeccable record of adherence to applicable sanctions and regulatory frameworks and will be adapting the refinery operations to meet the compliance requirements,” the spokesperson further said.

“As is customary in the industry, supply contracts evolve to reflect changing market and regulatory conditions. Reliance will address these conditions while maintaining the relationships with its suppliers. 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,” the company also said.

Reliance operates the world's biggest refining complex at Gujarat's Jamnagar, and has a long-term deal to buy around 500,000 barrels per day of crude oil from Russian oil major Rosneft.

What is the EU saying on Russian import?

On Thursday the European Union announced its latest sanctions package on Russia, EU High Representative Kaja Kallas announced after meeting leaders of the union in Brussels.

This move came a day after the US government announced fresh sanctions against two Russian oil companies based in Moscow.

These companies, Rosneft and Lukoil, have been accused by the US government of playing a role in financing Moscow's war efforts in Ukraine.

"We just adopted our 19th sanctions package. It targets Russian banks, crypto exchanges, entities in India and China, among others," Kallas, who is the EU foreign policy chief, said in a social media post.

"The EU is curbing Russian diplomats' movements to counter the attempts of destabilisation," she also said.

How these sanctions are affecting Russia

After the US sanctions on these Russian oil companies, and the Russian economy facing difficulties after years of continuous warfare, Putin can hardly afford more sanctions. Crude is already down 20% from the highs of January and Rosneft's income in the first half of the year went down by 68%.