‘Will be adapting refinery operations’: RIL responds to US, EU sanctions on Russian crude; commits to compliance

NEW DELHI: Reliance Industries Ltd (RIL) on Friday said it is assessing the impact of the latest sanctions imposed by the United States and the European Union on Russian oil companies.In an official statement, a company spokesperson said RIL will comply with guidelines on the import of refined products into Europe. “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,” the spokesperson said.“Whenever there is any guidance from the Indian Government in this respect, as always, we will be complying fully. Reliance will address these conditions while maintaining the relationships with its suppliers,” the spokesperson added.The statement came after US President Donald Trump on Wednesday sanctioned two major Russian oil firms—Rosneft and Lukoil. A day later, EU also targeted Russia’s oil and gas.Non-US firms could also face penalties if found dealing with the sanctioned companies or their subsidiaries. The US treasury department has said all existing transactions involving Rosneft and Lukoil must be wound down by November 21, reported PTI.According to a Bloomberg report, RIL, which has been the largest importer of Russian oil by volume this year, has bought millions of barrels of crude from the US and Middle East after Rosneft and Lukoil were hit by the sanctions.The company has purchased oil grades including Khafji from Saudi Arabia, Basrah Medium from Iraq, Al-Shaheen from Qatar, and West Texas Intermediate from the US. The shipments are expected to arrive in December or January, the report said.Russian crude flows are expected to remain in the 1.6–1.8 mbd range until November 21, but direct volumes from Rosneft and Lukoil are likely to decline thereafter, as Indian refiners seek to avoid any risk of US sanctions, said Sumit Ritolia, Lead Research Analyst (Refining and Modelling) at Kpler.