Reliance Industries will continue to import Russian crude for its domestic refinery but Halt Russian Oil Imports for SEZ Refinery

Reliance Industries, India’s largest oil refiner, has officially said that it will continue to import Russian crude for its domestic refinery. However it has stopped importing of Russian crude only-for-export refinery at Jamnagar, Gujarat, effective from 20 November.

Thus the decision of the company covers its Special Economic Zone (SEZ) refinery, Reliance will continue to source Russian crude for its domestic refinery located in the same complex.

This move forms part of the company’s efforts to take commercial decisions in line with Govt of India policies. The new European Union sanctions are targeting imports of any fuels to EU which are derived from Russian oil. This purely commercial decision of Reliance will ensure continued sale of fuel derivatives to European Union and United States.

The Jamnagar complex, the world’s biggest refining hub, processes around 1.4 million barrels per day of crude oil. It houses two distinct units — an SEZ refinery dedicated exclusively to fuel exports and a domestic tariff area (DTA) unit catering to India’s internal energy demand.

Until recently, the SEZ refinery processed significant quantities of Russian crude, refined into products such as petrol, diesel, and aviation turbine fuel (ATF) for markets in Europe and the United States.

The European Union wishes to import refined fuel from Jamnagar but at the same time wants to show that it has introduced restrictions to curb the flow of refined products generated from Russian-origin crude as part of its wider sanctions on Moscow’s energy revenues.

Well in case of too much of “jumping jack ” pressures, India always has the option to completely block sale of any refined fuel to EU.This will result in very harsh winter for the EU as a whole.

To ensure commercial sale to EU, Reliance confirmed that all fuel exports from its SEZ facility will be derived solely from non-Russian feedstock from 1 December onwards. The company stated that the transition to new supply chains has been completed “ahead of schedule” to ensure that EU has no objections.

According to Reliance, all pre-committed lifting of Russian crude agreed before 22 October 2025 fot its SEZ refinery is being fulfilled, with the last shipment loaded on 12 November. Crude arriving on or after 20 November will be diverted to the DTA unit.

Operational and logistical adjustments are being made to maintain uninterrupted supply and production as per purchasers requirements. The company also clarified that current crude inventories at SEZ refinery, Jamnagar will be processed over the next few weeks before switching fully to non-Russian crude.

Reliance’s decision follows purely commercial practice from Western markets that account for a major share of its refined fuel exports. Recently, the United States extended Ukraine-related sanctions against Russian energy companies, including Lukoil and Rosneft, escalating risks for buyers dealing with sanctioned entities. Reliance has had a long-term supply arrangement with Rosneft to source up to 500,000 barrels per day of crude, but this contract is now being phased out.

The shift comes against the backdrop of renewed trade tensions between USA and India. President Donald Trump’s administration in October imposed a 50% tariff on Indian fuel exports to the U.S., part of which was explicitly tied to India’s sustained purchases of Russian oil.

New Delhi has since accelerated the import of Russian crude which are to be refined for internal consumption. No one has the leverage to dictate on these matters. However as a commercial measure Indian private refineries who carry out exports to EU and USA have been directed by the Govt to scale down imports from Moscow. Reliance’s decision is therefore likely to improve India’s negotiating leverage.
For Reliance, the recalibration of crude sourcing marks both an operational challenge and a strategic repositioning. Russian crude has offered Indian refiners deep discounts since 2022, enhancing profit margins, yet growing sanction related financial risk have rendered such reliance untenable for export-focused production.

By shifting towards Middle Eastern and U.S. crude blends, the company will retain access to lucrative European and American fuel markets.

India remains the largest single buyer of Russian oil after China, with Reliance alone accounting for roughly half of India’s total Russian crude imports. However, the evolving energy geopolitics and sanctions regime are forcing refiners to diversify. The government has reiterated that private refiners, including Reliance, will remain free to source oil in line with commercial logic as long as national interests and international commitments are honoured.

Reliance’s proactive compliance move highlights its long-standing record of adapting to shifts in global trade. The company’s flexibility in procurement, logistics, and supply chain management will be critical in sustaining volumes and export competitiveness.

The phase-out of Russian crude at the SEZ refinery underlines the commercial aspect of the geopolitical maneuvers of India and the operational agility of one of the world’s most complex refining enterprises.