After RIL, IndianOil says it will abide by all sanctions

Economic Times
Economic Times
2M ago
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IndianOil and Reliance Industries announced they will adhere to new US sanctions on Russian oil firms, impacting India's oil supply chain. This matters as Russian crude constitutes about one-third of India's total oil imports.
After RIL, IndianOil says it will abide by all sanctions
A What happened
In response to new US sanctions targeting Russian oil firms Rosneft and Lukoil, IndianOil Corp and Reliance Industries have pledged to comply fully with these restrictions. The sanctions are significant as Russian oil accounts for approximately one-third of India's total oil imports, with Reliance relying on Russian crude for about half of its imports. The sanctions have prompted Indian refiners to seek alternative oil supplies from the Middle East, Brazil, the US, and Africa. Industry executives believe that while refiners will avoid engaging with sanctioned entities, Russia may still find ways to circumvent restrictions. The Indian government has not yet commented on the sanctions, and Russia claims the measures will not severely impact its economy.

Key insights

  • 1

    Impact on Indian Oil Supply: Sanctions could disrupt India's oil supply chain significantly.

  • 2

    Shift to Alternative Sources: Refiners are exploring new crude sources to replace Russian oil.

  • 3

    Compliance with International Norms: IndianOil and Reliance's compliance reflects adherence to global sanctions.

Takeaways

The commitment of IndianOil and Reliance to comply with US sanctions marks a pivotal shift in India's oil import strategy, necessitating a transition to alternative sources to ensure energy security.

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