Reliance Industries announced on Friday that it will comply with the EU guidelines on the import of refined products into Europe linked to the fresh sanctions that have been imposed on Russia’s crude oil exports.The company also said that “whenever there is any guidance from the Indian Government in this respect, as always, we will be complying fully.” Reliance is the largest importer of Russian crude oil in India, which it processes into petroleum products such as petrol and diesel at the company’s giant refinery in Jamnagar on the Gujarat coast for export and domestic use.
A large percentage of the crude throughput at the 35 million tonnes per annum refinery comprises Russian crude. The Indian company has indicated that it will be diversifying its sources for crude imports to fill this gap and adjust the operations at the refinery accordingly to cater to the domestic and EU market.
“We have noted the recent restrictions announced by the EU, UK and the US 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.
Whenever there is any guidance from the Indian Government in this respect, as always, we will be complying fully. Reliance has consistently aligned itself with the objectives of ensuring India’s energy security,” the Reliance spokesperson said.
The Company remains fully committed to maintaining its longstanding and impeccable record of adherence to applicable sanctions and regulatory frameworks and will be adapting the refinery operations to meet the compliance requirements, the spokesperson further stated. “As is customary in the industry, supply contracts evolve to reflect changing market and regulatory conditions.
Reliance will address these conditions while maintaining the relationships with its suppliers. Reliance is confident that its time-tested, diversified crude sourcing strategy will continue to ensure stability and reliability in its refinery operations for meeting the domestic and export requirements, including to Europe,” the spokesperson added.
The supply of Russian crude to major Indian refineries is likely to decline considerably following sanctions announced by the US against Rosneft and Lukoil, Russia’s two biggest oil companies. According to a Bloomberg report, Reliance has large quantities of crude from the US and the Middle East after the US imposed sanctions on the Russian oil companies. These consignments are expected to arrive at Jamnagar in December or January.