Reliance Industries Halts Russian Oil Processing at Export Refinery to Comply with EU and US Sanctions

Reliance Industries Ltd has announced the cessation of Russian crude oil processing at their export-only refinery in Jamnagar, Gujarat, as part of their efforts to comply with European Union sanctions.

The company, which stands as India's largest buyer of Russian oil, operates a massive oil refining complex in Jamnagar comprising two units - a Special Economic Zone (SEZ) refinery dedicated to exports to markets including the European Union and US, and another unit serving the domestic market.

The European Union, a significant market for Reliance, has implemented comprehensive sanctions targeting Russia's energy revenues, including restrictions on importing and selling fuels produced from Russian crude oil.

"We have stopped importing Russian crude oil into our SEZ refinery with effect from November 20," a company spokesperson stated on Thursday.

The refinery is currently processing existing inventories of Russian crude oil. Once these stocks are depleted, all subsequent products will be manufactured exclusively from non-Russian oil sources.

"From December 1, all product exports from the SEZ refinery will be obtained from non-Russian crude oil," the company confirmed, adding that "The transition has been completed ahead of schedule to ensure full compliance with product-import restrictions coming into force in January 2026."

Following the US sanctions against Russia's largest oil exporters - Rosneft and Lukoil - in October, Reliance had indicated it would adhere to all applicable restrictions and adjust operations accordingly.

"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," the company stated on October 24.

Reliance previously purchased approximately half of the 1.7-1.8 million barrels per day of discounted Russian crude imported to India. The company refines this into various fuels including petrol, diesel, and aviation turbine fuel (ATF), with a substantial portion exported to regions like Europe and the United States at market prices, generating robust margins.

This operational model faces potential disruption following US President Donald Trump's sanctions on Rosneft and Lukoil, which he accuses of funding Russia's military operations in Ukraine. Additionally, the European Union has prohibited the import of fuel derived from Russian crude starting January 2026.

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

The company clarified on Thursday that crude oil import in the SEZ occurs within a fully segregated facility dedicated to production in the zone.

"All pre-committed liftings of Russian crude oil as of October 22, 2025, are being honored, considering all transport arrangements were already in place. The final such cargo was loaded on November 12. Any Russian cargoes arriving on or after November 20 will be received and processed at our refinery in the domestic tariff area (DTA)," the statement elaborated.

Reliance, which has a 25-year agreement to purchase up to 500,000 barrels of crude oil daily from Rosneft, has been reducing its Russian imports since the implementation of US sanctions. With substantial business interests in the United States, the company cannot risk regulatory scrutiny.

Having purchased an estimated USD 35 billion worth of Russian oil since the Ukraine conflict began in February 2022, Reliance initiated a "recalibration" of its imports following the European Union's 18th sanctions package against Moscow in late July this year.

This recalibration essentially involves shifting import requirements to alternative regions, a process that industry sources suggest may accelerate further.

Transactions involving the two sanctioned Russian companies must be concluded by November 21.

Russia currently provides nearly one-third of India's crude imports, averaging approximately 1.7 million barrels per day in 2025, with roughly 1.2 million barrels per day sourced directly from Rosneft and Lukoil. Private refiners Reliance Industries Ltd and Nayara Energy purchased the majority of these volumes, with smaller quantities allocated to state-owned refineries.