Reliance Industries Significantly Cuts Russian Crude Oil Imports Amid Sanctions Compliance

Reliance Industries (RIL), led by Mukesh Ambani, has significantly decreased its crude oil imports from Russia. Data from Kpler indicates a drop to 534,000 barrels per day (bpd) in October, a 24% decrease from September and 23% below the average from April to September. Consequently, Russian crude oil constituted only 43% of RIL's total imports in October, down from 56% in September. This decision is driven by the need to comply with Western sanctions, particularly those imposed by the United States and the European Union, to safeguard its access to key global markets.

To offset the reduced Russian supply, RIL has substantially increased imports from the Middle East, with volumes from Saudi Arabia rising by 87% and Iraq by 31%, now accounting for 40% of total imports. Imports from the United States have also doubled, reaching approximately 10% of RIL's total intake.

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Difficult Terms: Crude Oil Imports: The process of bringing crude oil (unrefined petroleum) into a country from other countries for use in refineries. Barrels per day (bpd): A standard unit of measurement for oil production or consumption, representing the number of 42-gallon barrels of oil processed or moved daily. Sanctions: Penalties or restrictions imposed by governments on countries, entities, or individuals for political or economic reasons, often related to international law violations. Secondary Sanctions: Sanctions imposed by one country on third parties (companies or individuals) that do business with a sanctioned country, entity, or individual, even if those third parties are not directly sanctioned. Refinery: An industrial plant where crude oil is processed and refined into more useful products like gasoline, diesel, and jet fuel. Procurement: The act of obtaining or buying goods or services.