US sanctions on Rosneft, Lukoil hit Indian oil players hard
The US just slapped new sanctions on Russian oil giants Rosneft and Lukoil, and it's causing big waves for India's oil scene.
Reliance Industries Limited (RIL), which buys a huge chunk of its crude from Rosneft—about 500,000 barrels a day—could see its EBITDA drop by ₹3,000-3,500 crore.
Russian crude is a major part of RIL's oil-to-chemicals business, so this move really stings.
RIL and state-run oil companies are feeling the heat
With these sanctions in place, RIL may face up to 12% higher refining costs as it scrambles to find other suppliers.
State-run oil companies like Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum are also feeling the heat as they could lose up to 30% of their crude supply due to the sanctions.
Nayara Energy—which is almost half-owned by Rosneft—is now struggling with supply chain issues and pricier alternatives from the Middle East aren't helping much either.
All in all, the sanctions are making things tougher for India's top oil players right now.