Reliance Industries Stops Importing Russian Oil For Export-Only Refinery To Comply With Sanctions

Reliance Industries Ltd. has halted purchase of Russian oil for processing for its 'only-for-export' refinery from Nov. 20 onwards, news agency PTI reported on Thursday.

RIL had been sourcing a major chunk of its crude oil from Russia, making it the largest Indian buyer of Russian oil. The crude imports were then processed and turned into fuel, such as petrol and diesel, at its Jamnagar oil refining complex.

Essentially, there are two refineries in the complex — one SEZ unit which exports oil to the European Union, the United States and other markets, and another older unit which supplies to the domestic market.

The decision comes in the backdrop of the European Union imposing elaborate sanctions to target Russia's energy revenues. The measures include restrictions on the import and sale of fuels produced from Russian crude oil.

Along the same lines, US had also slapped sanctions on two of Russia's biggest oil refineries — Lukoil and Rosneft — in order to weaken the country's revenues amid its war against Ukraine.

"We have stopped importing Russian crude oil into our SEZ refinery with effect from Nov. 20," an RIL spokesperson was reported as saying by PTI.

As is the case with any large industrial factory, the refinery must have past raw material (crude oil) inventories, which it is currently processing and turning into fuels. Once the old inventory runs out, newer products will only be made from non-Russian oil.

"From December 1, all product exports from the SEZ refinery will be obtained from non-Russian crude oil," the firm said.

"The transition has been completed ahead of schedule to ensure full compliance with product-import restrictions coming into force in January 2026."

Last month, when the US sanctioned Russia's largest oil exporters - Rosneft and Lukoil, the firm had stated that it would meet all applicable restrictions and would adjust its refinery operations to meet compliance requirements.

"We have noted the recent restrictions announced by the European Union, the United Kingdom and the United States on crude oil imports from Russia and export of refined products to Europe. Reliance is currently assessing the implications, including the new compliance requirements," Reliance had said on Oct. 24.

Reliance, which operates the world's largest single-site oil refining complex at Jamnagar in Gujarat, purchased about half of the 1.7-1.8 million barrels per day of discounted Russian crude shipped to India.

The company refines the crude into petrol, diesel and aviation turbine fuel (ATF), a large share of which is exported to regions such as Europe and the United States, at market prices, generating strong margins.

All this may change after US President Donald Trump imposed sanctions on Open Joint Stock Company Rosneft Oil Company (Rosneft) and Lukoil OAO (Lukoil) -- Russia's two largest oil companies that he accuses of helping fund the Kremlin's "war machine" in Ukraine.

Additionally, the European Union has barred the import of fuel made from Russian crude, starting January 2026.

"We will comply with the EU's guidelines on the import of refined products into Europe," Reliance had said.

On Thursday, the firm said the crude oil import in SEZ is a fully segregated facility catering to the production line in SEZ.

"All pre-committed liftings of Russian crude oil as of October 22, 2025, are being honoured, considering all transport arrangements were already in place."

"The final such cargo was loaded on Nov. 12. Any (Russian) cargoes arriving on or after Nov. 20 will be received and processed at our refinery in the domestic tariff area (DTA)," it said.

"All operational activities ordinarily incident to such oil supply transactions can be completed, we believe, in a compliant way."

Reliance, which has signed a 25-year deal to buy up to 5,00,000 barrels of crude oil per day (25 million tonnes in a year) with Rosneft, has been cutting Russian imports since the US sanctions.

The company has huge business interests in the US and cannot risk attracting scrutiny.

Reliance, which bought an estimated $35 billion worth of Russian oil since the start of the Ukraine war in February 2022, started "recalibration" of its imports soon after the European Union adopted its 18th package of sanctions against Moscow in late July this year.

Recalibration is nothing but moving the import requirement to a different region. And this may get expedited now, industry sources said.

Transactions involving the two sanctioned Russian firms need to be wound down by Nov. 21.

Russia currently supplies nearly a third of India's crude imports, averaging around 1.7 million barrels per day (mbd) in 2025, of which approximately 1.2 mbd came directly from Rosneft and Lukoil.

Most of these volumes were bought by private refiners, Reliance Industries and Nayara Energy, with smaller allocations to state-owned refiners.

(With PTI inputs)