Russia’s top Indian oil buyer to comply with Western sanctions

Reliance Industries Ltd, India’s largest oil importer, has announced it will comply with Western sanctions, ending days of rumors about how the two biggest oil companies in the world will handle new measures aimed at Russia.

Reliance “will be changing the refinery operations to meet the compliance requirements,” according to a company spokesperson who confirmed the company’s statement on Friday.

We will follow all instructions from the Indian government, the statement continued.

As President Donald Trump grows increasingly irritated with Russia’s unwavering war with Ukraine, the US Treasury Office of Foreign Assets Control (OFAC) designated Russian companies Rosneft and Lukoil for the first time on Wednesday.

The decision, according to US Secretary of the Treasury Scott Bessent, was the result of Russian President Vladimir Putin’s “refusal to end this senseless war” and urged allies to abide by the new sanctions.

The European Union put its 19th package of measures against Russia into place the day after it was put in place, which includes a total ban on Rosneft. Beginning January 21, the EU has previously stated that it will no longer be able to import fuel from Russian refineries that have received or processed Russian oil 60 days prior to shipment.

The largest refining facility in western Gujarat is run by Reliance, which is led by billionaire businessman Mukesh Ambani. According to the news agency Press Trust of India, the company has purchased roughly half of the discounted Russian crude that is shipped to India every day (bpd).

Reliance and Rosneft signed a 10-year agreement in 2024, according to a report from Reuters at the time. Russian oil is also purchased through intermediaries.

Reliance stressed that it would adhere to European import standards, not specifics on how exactly it intended to navigate the sanctions or the fate of the 2024 Rosneft agreement.

Reliance’s spokesman said the company is confident that its time-tested, diversified crude sourcing strategy will continue to ensure stability and reliability in its refinery operations in order to fulfill domestic and export requirements, including those of Europe.

The sanctions come as India prepares to deal with Trump’s tariffs on Indian exports, which began in August as a fine for importing Russian oil. The biggest importers of Russian crude are China and India.

Trump has repeatedly stated over the past month that the Indian government has not confirmed that India has agreed to stop buying Russian oil as part of a wider trade agreement.