Reliance Slashes Russian Oil Imports Amid US Pressure
Edward LawsonReliance Industries slashes Russian crude imports, driven by US sanctions and EU rules, signaling a major strategic pivot.
India's top private refiner, Reliance Industries, is set to drastically reduce its intake of Russian crude oil. Starting in February, the company plans to import approximately 150,000 barrels per day (bpd) of non-sanctioned crude, a significant cut driven by compliance with U.S. sanctions.
This move marks a major policy shift for the company, led by billionaire Mukesh Ambani. Previously, Reliance was a primary customer for Russian crude, importing over 500,000 bpd through a long-term agreement with Rosneft.
Following U.S. sanctions targeting Russian energy giants like Rosneft and Lukoil, Reliance completely stopped its purchases from Rosneft and began sourcing crude from non-Russian suppliers.
Navigating US Trade Tariffs
The decision to limit Russian oil imports aligns with India's broader strategy to navigate difficult trade negotiations with the United States. The Trump administration has specifically targeted India for its significant purchases of Russian crude, which are seen as supporting Moscow's energy revenues.
In response, President Donald Trump doubled a tariff on India from 25% to 50%, effective August 2025, as a punitive measure. Consequently, Reliance's import volume is dropping from over 550,000 bpd just months ago to the new, limited level of 150,000 bpd.
Adjusting Operations for EU Rules
European Union regulations are also shaping Reliance's operational strategy. The EU recently implemented a ban, effective January 21, on importing petroleum products made from Russian-origin crude, even if they are processed in a third country.
To comply with this rule, Reliance will now process its limited Russian crude imports exclusively at its Jamnagar refinery unit that serves the domestic Indian market. As a proactive measure, the company had already ceased processing Russian crude at its export-oriented refinery units in November to ensure full compliance with the impending ban.
