Reliance Industries Ceases Russian Oil Imports for Export Refinery

Reliance Industries Limited, India's largest oil refiner, has announced the suspension of Russian oil imports for its export-only refinery located in Jamnagar, Gujarat. This decision is part of the company's compliance with the European Union's sanctions against Russia, which are aimed at restricting energy revenues amid ongoing geopolitical tensions.

The company confirmed that it would cease processing Russian crude oil at its Special Economic Zone (SEZ) refinery from November 20, 2025. Effective December 1, all exports from this facility will be derived exclusively from non-Russian sources. According to a company spokesperson, "We have stopped importing Russian crude oil into our SEZ refinery with effect from November 20."

The Jamnagar refinery complex consists of two refineries: one dedicated to exports and another serving the domestic market. Reliance has been a significant buyer of Russian crude, sourcing oil from both long-term contracts and the spot market. The European Union has implemented extensive sanctions on Russian energy imports, which have a considerable impact on Reliance's operations, particularly as the EU represents a critical market for the company's refined products.

The sanctions include measures that restrict the import and sale of fuels derived from Russian crude oil. The transition to non-Russian crude oil sources has been expedited by Reliance to ensure full compliance with upcoming product-import restrictions set to take effect in January 2026. As part of this recalibration, the company will honour any pre-committed shipments of Russian crude made before October 22, 2025, maintaining existing transport arrangements. The last such cargo was reportedly loaded on November 12. Following the new sanctions, a spokesperson for Reliance Industries stated, "We will comply with the new rules." The company has committed to aligning its operations with the Government of India's guidelines regarding oil imports.

Reliance Industries has previously maintained a significant long-term agreement with Russian oil major Rosneft, through which it acquired nearly 500,000 barrels per day of crude oil. However, the latest sanctions have prompted the company to reassess its import strategies, particularly given its business interests in the United States.

Since the onset of the Ukraine conflict in February 2022, Reliance has imported approximately $35 billion worth of Russian oil. This latest decision reflects a broader industry trend as Indian refiners, including Reliance and Nayara Energy, navigate the complexities of international sanctions while managing domestic energy needs. The Jamnagar refinery, renowned as the world’s largest single-site oil refining complex, has a processing capacity of 1.4 million barrels per day.

A substantial portion of its output, including petrol, diesel, and aviation turbine fuel, is exported to international markets at competitive prices, contributing to the firm's robust refining margins. The company's strategic shift away from Russian oil underscores the evolving landscape of global energy markets, particularly as regulatory pressures continue to mount. Reliance’s proactive measures aim to ensure compliance while maintaining its operational integrity in the face of geopolitical challenges.