Reliance Industries, India’s largest oil refiner, has officially stopped importing Russian crude for its only-for-export refinery at Jamnagar, Gujarat, effective from 20 November.

This move forms part of the company’s efforts to comply with European Union sanctions targeting fuels derived from Russian oil. While the halt covers its Special Economic Zone (SEZ) refinery, Reliance will continue to source Russian crude for its domestic refinery located in the same complex.

The Jamnagar complex, the world’s biggest refining hub, processes around 1.4 million barrels per day of crude oil. It houses two distinct units — an SEZ refinery dedicated exclusively to fuel exports and a domestic tariff area (DTA) unit catering to India’s internal energy demand.

Until recently, the SEZ refinery processed significant quantities of Russian crude, refined into products such as petrol, diesel, and aviation turbine fuel (ATF) for markets in Europe and the United States.

The European Union has introduced restrictions to curb the flow of refined products generated from Russian-origin crude as part of its wider sanctions on Moscow’s energy revenues.

To remain compliant, Reliance confirmed that all fuel exports from its SEZ facility will be derived solely from non-Russian feedstock from 1 December onwards. The company stated that the transition to cleaner supply chains has been completed “ahead of schedule” to ensure adherence to trade restrictions that will come into effect in early 2026.

According to Reliance, all pre-committed lifting of Russian crude agreed before 22 October 2025 is being fulfilled, with the last shipment loaded on 12 November. Crude arriving on or after 20 November will be diverted to the DTA unit.

Operational and logistical adjustments are being made to maintain uninterrupted supply and production while strictly complying with global sanctions. The company also clarified that current crude inventories at Jamnagar will be processed over the next few weeks before switching fully to non-Russian grades.

Reliance’s decision follows mounting international pressure from Western markets that account for a major share of its refined fuel exports. Recently, the United States extended Ukraine-related sanctions against Russian energy companies, including Lukoil and Rosneft, escalating risks for buyers dealing with sanctioned entities. Reliance has had a long-term supply arrangement with Rosneft to source up to 500,000 barrels per day of crude, but this contract is now being phased out.

The shift comes against the backdrop of renewed U.S. trade tensions. President Donald Trump’s administration in October imposed a 50% tariff on Indian fuel exports to the U.S., part of which was explicitly tied to India’s sustained purchases of Russian oil.

New Delhi has since accelerated talks with Washington to reduce these duties in exchange for scaling down imports from Moscow. Reliance’s decision is therefore likely to improve India’s negotiating leverage and demonstrate alignment with Western compliance frameworks.

For Reliance, the recalibration of crude sourcing marks both an operational challenge and a strategic repositioning. Russian crude has offered Indian refiners deep discounts since 2022, enhancing profit margins, yet growing sanction complexity and financial risk have rendered such reliance untenable for export-focused production.

By shifting towards Middle Eastern and U.S. crude blends, the company will retain access to lucrative European and American fuel markets while protecting its brand from sanction exposure.

India remains the largest single buyer of Russian oil after China, with Reliance alone accounting for roughly half of India’s total Russian crude imports. However, the evolving energy geopolitics and sanctions regime are forcing refiners to diversify. The government has reiterated that private refiners, including Reliance, will remain free to source oil in line with commercial logic as long as national interests and international commitments are honoured.

Reliance’s proactive compliance move highlights its long-standing record of adapting to regulatory shifts in global trade. As energy flows from Russia become more restricted, the company’s flexibility in procurement, logistics, and supply chain management will be critical in sustaining volumes and export competitiveness.

The phase-out of Russian crude at the SEZ refinery underlines both the geopolitical weight of Western sanctions and the operational agility of one of the world’s most complex refining enterprises.

Agencies