Synopsis : Reliance Industries has stopped using Russian crude at its export-only Jamnagar SEZ refinery to comply with stringent EU sanctions coming into force in 2026.
The shift marks a major recalibration in India’s largest private refiner’s sourcing strategy, impacting global crude dynamics and export flows.
Reliance Industries Ltd (RIL), India's largest private oil refiner and the country’s biggest buyer of Russian crude, has announced a complete halt in the use of Russian oil at its export-only refinery located in the Special Economic Zone (SEZ) at Jamnagar, Gujarat.
The decision comes as the company prepares to fully comply with European Union sanctions that prohibit the import of fuels refined from Russian crude starting January 2026 — a significant restriction, given that the EU is a major export market for Reliance’s refined products such as petrol, diesel, and aviation turbine fuel.
Key Operational Shift
Reliance operates the world’s largest single-site refining complex, consisting of:
SEZ refinery : Export-focused, caters to Europe, the US, and other foreign markets
DTA (Domestic Tariff Area) refinery : Caters to the Indian market
A company spokesperson confirmed:
“We have stopped importing Russian crude oil into our SEZ refinery with effect from November 20.”
Though processing of existing inventory continues, Reliance stated that from December 1, all exports from the SEZ facility will be made entirely from non-Russian crude. The company emphasized that this transition has been completed ahead of schedule to ensure full compliance with upcoming sanctions.
Global Sanctions Force Strategic Recalibration
The move follows the US and EU tightening restrictions earlier this year, including sanctions targeting Russia’s biggest oil exporters — Rosneft and Lukoil. These sanctions require companies to wind down transactions by November 21.
Reliance, which purchased an estimated USD 35 billion worth of Russian crude since the Ukraine war in February 2022, began reducing Russian imports after the EU’s 18th sanctions package in July 2025. Industry sources say the company is now accelerating this “recalibration,” meaning shifting crude sourcing from Russia to alternative suppliers.
Why This Matters
RIL typically buys half of the 1.7–1.8 million barrels per day of Russian crude shipped to India.
Much of this crude is refined into high-value fuels exported to Europe and the US, generating strong margins.
With sanctions tightening, Reliance cannot risk compliance violations given its massive business interests in Western markets.
The company clarified that while all previously committed cargoes (as of October 22) are being honoured, any Russian shipments arriving on or after November 20 will now be processed only at the domestic-focused DTA refinery, not the export-oriented SEZ unit.
India’s Broader Energy Landscape
Russia currently supplies nearly one-third of India’s crude requirements. Most of these volumes go to private refiners such as Reliance and Nayara Energy, with state-owned firms purchasing smaller amounts.
However, with sanctions intensifying and compliance windows narrowing, India’s refining sector may witness a shift in sourcing strategy — especially among exporters reliant on Western markets.
Disclaimer : This article is for informational purposes only. It does not constitute financial, investment, or legal advice. Readers should consult qualified professionals before making any business or investment decisions.
