Reliance to comply with western sanctions on Russian oil; state refiners pause orders

India-based energy conglomerate Reliance Industries (RIL) said it will comply with Western sanctions targeting Russian energy exports, Reuters reports. The US, EU, and UK have imposed sanctions on Russian oil producers, including Rosneft and Lukoil PJSC.

Sanctions update: The latest measures from the US and EU expand restrictions on the Russian energy trade. The US has set a 21 November deadline for companies to wind down transactions with sanctioned entities, while the EU’s 19th sanctions package bans imports of fuel refined from Russian crude processed within 60 days before shipment.

Company response: RIL said it will modify its crude purchase contracts in line with changing market and regulatory conditions, that it will comply with the EU’s guidelines on refined product imports into Europe and maintain its diversified crude sourcing strategy to ensure operational stability, in a statement cited by newswire ANI. The company said it would address these changes “while maintaining relationships with its suppliers.” RIL did not specify whether import from Rosneft would be reduced or suspended once the wind-down period ends.

Context: The company, controlled by b’naire Mukesh Ambani, is the country's key private refiner and leading buyer of Russian crude. It operates a major refining and petrochemical complex in the western Indian state of Gujarat and has a long-term supply agreement with Russian state-owned oil producer Rosneft PJSC to purchase about 500k barrels per day (bpd) of crude.

INDIAN STATE REFINERS PAUSE NEW RUSSIAN OIL ORDERS-

Indian state refiners have also paused new orders for Russian crude oil after the latest US sanctions on Rosneft and Lukoil, Reuters reports. The decision affects both private and state-run refiners — including RIL, Indian Oil Corporation (IOC), Bharat Petroleum Corporation, Hindustan Petroleum Corporation, and Chennai Petroleum (CPCL) — as they await guidance from banks and government authorities on compliance procedures. IOC and its subsidiary CPCL said they will not buy crude from Rosneft or Lukoil beyond the 21 November wind-down deadline, according to The Hindu Businessline.

Trade shift: India imported around 1.9 mn bpd of Russian crude in the first nine months of 2025, about 40% of Russia’s seaborne exports, but shipments have begun to ease as refiners explore suppliers in the Middle East and the US, Business Standard reports.

IOC stance: IOC said Russian crude is not under blanket sanctions and it will continue sourcing from non-sanctioned suppliers and using compliant shipping channels under the price-cap regime. The company’s senior IOCL official indicated during the results call with analysts that IOC would maintain Russian purchases as long as transactions comply with sanctions, The Hindu Businessline reports.

MOSCOW TO BOOST LNG EXPORTS TO INDIA-

Russia plans to expand liquefied natural gas (LNG) exports to India as both countries deepen energy ties amid Western sanctions, The Economic Times reports. Energy minister Sergei Tsivilev said Moscow could increase shipments from current and upcoming LNG projects, calling India a key partner in its fuel and energy sector. India aims to raise natural gas’s share in its energy mix to 15% by 2030, up from about 6% now. Russia currently exports 3 mn tonnes of LNG to India annually and is exploring higher supplies under ongoing talks led by Deputy Prime Minister Alexander Novak. Russia also aims to raise coal exports to 40 mn tonnes by 2035.