Reliance Industries’ decision to stop using Russian crude at its export-focused Jamnagar refinery underscores how quickly the global landscape for Russian oil is shifting, and how Indian refiners are now being pushed to reorganise supply chains under mounting Western sanctions.
Reliance confirmed that, from November 20, its Special Economic Zone (SEZ) refinery — the unit that supplies fuel to Europe, the US and other international markets — will no longer process Russian crude. The change comes ahead of strict European Union rules that will prohibit the import of fuels produced from Russian-origin oil beginning January 2026. While the refinery is currently running on older inventory, every product exported from December 1 onward will be made exclusively from non-Russian crude.
The move aligns Reliance with the expanding sanctions regime built by the EU, UK and US, especially after Washington targeted Rosneft and Lukoil, Russia’s biggest energy firms. For years, Reliance was India’s largest buyer of discounted Russian crude, purchasing nearly half of all Russian barrels shipped to India and exporting refined products to Western markets at strong margins.
But those economics are now colliding with compliance risks. Reliance has significant business exposure in the US and Europe, and ignoring the sanctions could jeopardise its global operations. The company has therefore begun “recalibrating” its sourcing strategy, shifting crude purchases to other regions and diverting remaining Russian cargoes to its domestic-market refinery.
Industry executives say the recalibration will likely accelerate, especially as transactions with Rosneft and Lukoil must be wound down by November 21. India currently imports around one-third of its crude from Russia — nearly 1.7 million barrels per day in 2025 — with Reliance and Nayara Energy accounting for the bulk of these volumes. With Reliance stepping back sharply at its export refinery, India’s private refiners are preparing for a rapid restructuring of sourcing patterns.
The abrupt shift illustrates a broader trend: Western sanctions are tightening, Russian oil rules are evolving fast, and Indian refiners — who benefited significantly from discounted supplies over the past two years — must now adapt to a far more restrictive environment.
