Reliance stops import of Russian crude oil into Jamnagar's SEZ refinery

Mukesh Ambani-led Reliance Industries Ltd (RIL) has stopped import of Russian crude oil into its Special Economic Zone (SEZ) refinery in Jamnagar, Gujarat, with effect from November 20, the company said in a statement late Thursday evening. This comes hours before the United States’ sanctions on Russian oil companies Rosneft and Lukoil are supposed to come into effect (from November 21).

The two sanctioned entities account for 60-70 per cent of India’s Russian oil import. RIL had a long-term contract to purchase nearly 500,000 barrels per day (bpd) from Rosneft, which owns 49 per cent in Nayara Energy.

With most Indian oil firms now suspending Russian oil purchases, it could pave the way for a reconsideration of the 25 per cent penal tariffs on Indian goods shipped to the US. The development potentially sets the stage for an Indo-US bilateral trade agreement that could ease the 25 per cent reciprocal tariff.

Reliance also said that its petroleum products exports from the SEZ refinery would be obtained from non-Russian crude oil to ensure full compliance of the European Union (EU) restrictions coming into force on January 21, 2026.

Under the EU’s 18th sanctions package announced in July, the bloc banned imports of refined oil products derived from Russian crude into Europe.

RIL said Russian oil cargoes arriving on or after November 20 would be processed at RIL’s refinery in the Domestic Tariff Area (DTA). “All pre-committed liftings of Russian crude oil as of 22 October 2025 are being honoured, considering all transport arrangements were already in place. The final such cargo was loaded on 12 November,” the company said.

Reliance operates the world’s largest integrated, single-site refinery complex in Jamnagar, Gujarat, with a crude processing capacity of 1.4 million barrels per day (bpd).

In an effort to end the Ukraine war and limit Moscow’s financial capability, US President Donald Trump has put pressure on India to halt Russian oil purchases. Trump imposed a 25 per cent penalty on New Delhi for buying Russian oil, increasing the tariff on Indian goods to 50 per cent.

Trump, while announcing the latest US sanctions, said India’s crude oil imports from Russia would come down to almost zero by the end of this year. Second only to China, India became the largest buyer of Russian oil after war broke between Ukraine and Moscow in February 2022. New Delhi sources 30-35 per cent of its crude oil from Moscow.

While Indian state-run refiners have no term deals with Moscow, they rely mostly on spot cargo arranged through intermediaries, insulating them from any direct impact of the sanctions.

A state-run company executive told Business Standard the company would refrain from buying Russian oil from sanctioned entities even through intermediaries or traders. “We get oil from traders but we always ask about the source. If there is a trail leading us to those sanctioned entities, we will not touch that,” the official said.

Major state-run refiners include Indian Oil Corporation (IOC), Bharat Petroleum Corporation, and Hindustan Petroleum Corporation. IOC has agreed to comply with the US sanctions while Hindustan Petroleum-Mittal Energy Ltd (HMEL) has also suspended Russian oil purchase in the wake of sanctions imposed by the West on Moscow.

In recent months, Indian refiners have grown increasingly cautious of buying crude oil from Russia over concerns about breaching the US Treasury’s Office of Foreign Assets Control (OFAC) sanctions.

Crude oil loadings in Russia in November for India delivery fell to a three-year low following United States (US) sanctions on the Eurasian country’s two oil producers. Oil takes 30-45 days to be delivered after booking.

India’s oil loading from Russia in November so far almost halved from the previous month, according to maritime intelligence firm Kpler. India-bound Russian oil stands at 0.98 million barrels per day (bpd) till November 20 compared to 1.86 million bpd in October.

“The decline is driven primarily by OFAC sanctions targeting Rosneft and Lukoil, the two largest Russian suppliers to Indian refiners. While volumes may still shift, as some in-transit vessels could revise their final destinations, the trend is clear: India-bound flows are softening,” said Sumit Ritolia, lead research analyst, refining & modelling, Kpler.

Although loadings declined sharply, the volume of Russian oil delivered in India jumped 17.39 per cent in November as refiners rushed to maximise purchases ahead of the November 21 deadline.

The Kpler data showed that India’s delivered crude oil import from Russia was at 1.89 million bpd till November 20, as against 1.61 million bpd in October.

The oil import data reflects crude oil which has landed in India, while loadings data show shipments loaded in origin country to be delivered here.

West Asia replaces Russia

Iraq emerged as the preferred choice for Indian refiners as the companies look to replace Russian barrels. Crude oil loadings from Iraq climbed 6.65 per cent at 1.02 million bpd till November 20 from the previous month.

India-bound loadings from countries like Kuwait, Brazil and Guyana grew significantly, while supplies stayed strong from Saudi Arabia, the United Arab Emirates, and the US.

“Indian refiners are diversifying supply, increasing intake from West (Saudi Arabia, Iraq, Kuwait, and the UAE), Latin America (Brazil, Colombia, and Guyana), West Africa, and North America (US and Canada) to offset lower Russian volumes,” said Ritolia.

Amid talks on a bilateral trade agreement between India and the US, New Delhi is expected to boost energy imports to narrow its trade surplus with Washington.

On November 17, Indian state-run refiners finalised the first contract to import from the US liquefied petroleum gas of around 2.2 million tonnes per annum.