Reliance Industries to Evaluate Impact of EU Sanctions on Russian Oil Trade

Reliance Industries, India's largest refiner, will evaluate the impact of EU sanctions on Russian oil trade, which includes restrictions on petroleum products refined from Russian crude in third countries. The company imports $50.3 billion worth of crude from Russia, accounting for a third of India's total crude imports. RIL will assess the sanctions' scope and definitions before taking a formal position. The company is diversified and exports petroleum products worth $5 billion to the EU. Margins could rise sharply if Europe loses access to certain distillates.

Reliance Industries Limited (RIL), India's largest refiner, is set to assess the potential impact of the European Union's latest sanctions on Russian oil trade. The sanctions, part of the EU's 18th sanctions package, target Russian oil and energy revenues and include restrictions on petroleum products refined from Russian crude in third countries, which could affect Indian exports.

RIL, which imports $50.3 billion worth of crude from Russia, accounting for a third of India's total crude imports, will evaluate the scope and definitions of these sanctions before taking a formal position. The company is diversified, exporting petroleum products worth $5 billion to the EU, with light distillates primarily going to the US and other destinations, while middle distillates head to Europe.

Srinivas Tuttagunta, Chief Operating Officer (Supply and Trading) at RIL, stated that the company would review the final text of the sanctions before taking a formal position. He added that margins could rise sharply if Europe loses access to certain distillates, as was the case in 2022 during the initial Russian sanctions.

The sanctions, which become effective on September 3, could significantly impact RIL's operations and those of other Indian refiners. Rosneft, which holds a 49.13% stake in Nayara Energy, has criticized the EU sanctions, labeling them "unjustified," "illegal," and a violation of international law. The sanctions threaten India's energy security and could negatively impact its economy, according to Rosneft.

The EU's actions are part of broader efforts to restrict Kremlin revenues from oil exports. However, India's government has expressed opposition to unilateral sanctions, supporting United Nations-based measures instead. The sanctions could contribute to destabilizing global energy markets and amount to unfair competition measures, according to Rosneft.

The sanctions come at a time when India's oil imports from Russia have risen marginally in the first half of this year, with private refiners Reliance Industries Ltd and Nayara Energy making almost half of the overall purchases from Moscow. India, the world's third-largest oil importer and consumer, received about 1.75 million barrels per day of Russian oil in January-June this year, up 1% from a year ago.

References:
[1] https://timesofindia.indiatimes.com/business/india-business/russia-sanctions-eu-restrictions-on-russian-oil-could-hit-indias-15-billion-fuel-exports-will-have-to-walk-a-fine-line/articleshow/122798101.cms
[2] https://economictimes.indiatimes.com/industry/energy/oil-gas/reliance-industries-to-evaluate-impact-of-eu-sanctions-on-russian-oil-trade/articleshow/122800561.cms
[3] https://eurasiabusinessnews.com/2025/07/20/russia-rosneft-criticizes-eu-sanctions-against-indias-nayara-refinery/
[4] https://www.reuters.com/business/energy/indias-russian-oil-imports-up-slightly-january-june-data-shows-2025-07-16/