Reliance Industries has announced that it will comply with the Indian government's new guidelines on oil imports from Russia. This decision comes after the United States and Europe imposed strict sanctions on major Russian oil companies Lukoil and Rosneft. Through this move, India aims to maintain a balance between international pressure and energy security.
Reliance plan: Amid increasing international pressure on Russia, Reliance Industries Limited has announced changes to its oil procurement policy. The company stated that it would adjust its oil imports from Russia in accordance with the Indian government's directives. This move comes as the United States, Europe, and Britain have imposed new sanctions on Russian oil companies Lukoil and Rosneft. Reliance's decision will help India benefit from cheaper Russian oil while avoiding violations of international sanctions.
Impact of International Sanctions
This decision comes at a time when the United States and Europe have implemented new strict sanctions on Russia. These sanctions include two major Russian oil companies, Lukoil and Rosneft. US President Donald Trump has targeted these companies, and the European Union has also approved its 19th sanction package on Russia. This package also includes a ban on the import of Russian liquefied natural gas.
Last week, Britain took similar action by imposing sanctions on Lukoil and Rosneft. Following the US sanctions, Indian state-owned oil companies are reviewing their deals to ensure that no transactions are linked to these sanctioned entities.
Reliance: Cheaper Russian Oil, Compliance with International Rules
Reliance has clarified that the company will operate strictly in accordance with government guidelines. A spokesperson stated that their priority is to keep India in an economically balanced position. This means that cheaper oil from Russia will continue to be sourced, but international sanctions will not be violated.
The company's move also demonstrates Reliance's attempt to maintain a balance between global politics and commercial pressures. As of 10:48 AM on Thursday, Reliance Industries' shares were trading at ₹1,463.85, down by ₹1.30.
Surge in Oil Prices
Following the new actions by the US and Europe, an immediate impact on crude oil prices was observed. Brent crude oil prices rose by more than two dollars per barrel, reaching approximately 64 dollars per barrel. Trump stated that sanctions on Russia were imposed to target companies funding President Putin's war machine.
US Focus on India
The US has previously pressured India. The Trump administration had imposed an additional 25 percent tariff on India because India was purchasing oil from Russia at a discount. However, no such action was taken against China, a major buyer of Russian oil.
US Treasury Secretary Scott Bessent stated that due to President Putin's failure to stop the war, the US has taken strict action against two major Russian oil companies. He also appealed to allied nations to comply with these sanctions.
Reliance: Energy Security and International Balance
Reliance's move holds strategic importance for India. The country needs to ensure energy security without violating international sanctions. Coordination between the government and major oil companies will help strike this balance.
Experts believe that Reliance's policy will help maintain India's stability in the global market. Additionally, it will prove helpful in avoiding any international disputes concerning oil purchases from Russia.
