Reliance Industries Halts Russian Oil Imports to Comply with EU Sanctions

Staff Report | PNN

India’s largest company, Reliance Industries, owned by Mukesh Ambani, has stopped importing Russian crude oil for its export-focused refinery unit in Jamnagar, Gujarat, western India.

The move aims to comply with the European Union’s upcoming ban on third-country imports of fuels produced from Russian oil, effective early next year. This aligns with new U.S. sanctions on Russian oil companies Rosneft and Lukoil, effective Friday.

Reliance stated, “This change has been implemented ahead of schedule to ensure full compliance with import restrictions effective January 21, 2026.”

The White House welcomed the move, stating, “We applaud this step and hope it will contribute to progress in U.S.-India trade discussions.”

India’s purchase of Russian oil has long been a point of contention between New Delhi and Washington. In August, former President Trump imposed a 50% tariff on India, including 25% on Russian oil and weapons purchases, citing funding for Russia’s war in Ukraine—a claim India denied.

Before the 2022 war, Russian oil accounted for only 2.5% of India’s imports, rising to about 35.8% in 2024–25. Reliance is the main importer, handling roughly 50% of Russia’s oil flow into India.

The Jamnagar refinery is the world’s largest single-site refining complex, with separate units for export and domestic markets.

Under global scrutiny, India is gradually reducing Russian oil imports strategically. In October, Reliance cut purchases from sanctioned Russian companies by 13% while increasing imports from Saudi Arabia by 87% and Iraq by 31%.

Bloomberg reports that other government-controlled refineries are also avoiding Russian crude in December contracts. Analysts say this step should prompt the U.S. to immediately lift the 25% extra tariff on Indian products, as maintaining the tariff could disrupt delicate trade negotiations. This marks a slow easing of a longstanding obstacle in U.S.-India relations: Russian oil imports.