New Delhi, Aug 12 (NationPress) The recent crackdown on Russian oil exports by US President Donald Trump has dealt a significant blow to Mukesh Ambani-led Reliance Industries Ltd. (RIL). Reliance was a leading importer of affordable crude oil, which it processed at its massive refinery located in Jamnagar, Gujarat.

This setback is evident in the slump of Reliance's stock prices, which have experienced a decline following Trump's increased criticisms of India's purchases of Russian oil.

Over the past month, the blue-chip stock has fallen nearly 7 percent. As of 2:38 p.m. on Tuesday, shares were trading at Rs 1,380, down 0.40 percent. This represents a drop of roughly 11 percent from its 52-week peak of Rs 1,551.

A report from the Financial Times indicates that Reliance was one of the largest beneficiaries of Russian crude imports. Amrita Sen, director of research at the consultancy Energy Aspects, noted that private Indian refiners like Reliance fared better than state-owned competitors such as Indian Oil and Bharat Petroleum, due to their higher export rates of oil products. Sen estimates that Reliance Industries gained approximately $6 billion from acquiring inexpensive Russian oil.

Previously, the US did not object to Russian oil imports, provided they were priced below the $60-per-barrel cap set by G7 nations to limit Russia's revenues. These transactions also ensured a steady supply of crude in the market, preventing prices from escalating uncontrollably.

Petroleum Minister Hardeep Singh Puri emphasized that India's imports of Russian crude oil have been instrumental in stabilizing global energy prices.

In a recent interview, Puri remarked: "Russia is one of the largest crude producers, generating over 9 million barrels/day. If this oil, constituting about 10 percent of the global oil supply of around 97 million, were to disappear from the market, it would create chaos. Consumers would have to compete for reduced supplies, driving prices up to $120-130."

He added, "India has positively contributed to global energy price stability while successfully managing the triad of energy availability, affordability, and sustainability."

India maintains that Russian oil is not subject to global sanctions. According to the minister, "Sensible decision-makers worldwide recognize the realities of global oil supply chains. By purchasing discounted oil under a price cap, India is merely aiding the global markets."