RIL cuts Russian oil to protect EU access and dodge US sanctions in sweeping refinery pivot

Reliance Industries Ltd (RIL) has halted imports of Russian crude for its export-oriented refinery at Jamnagar, moving to secure full compliance with Europe’s impending ban on petroleum products derived from Russian oil.

The strategic shift — completed weeks ahead of deadline — marks one of the most significant course corrections by a global refiner since sanctions on Moscow began.

RIL, which runs the world’s largest single-site refining complex in Gujarat, confirmed that all product exports from its Special Economic Zone (SEZ) refinery will be produced exclusively from non-Russian crude beginning December 1. “This transition has been completed ahead of schedule to ensure full compliance with product-import restrictions coming into force on 21 January 2026,” the company said in an official statement.

The move underlines the stakes: the European Union is a crucial market for Reliance’s refined fuels. Under a sweeping sanctions package aimed at choking off Moscow’s war revenues, the EU has mandated that oil products sold into the bloc must not be derived from Russian crude, even if refined in a third country. Exporters must provide verifiable documentation.

The pullback also coincides with the end of the US wind-down period for business with Russian energy giants Rosneft and Lukoil — the two companies that account for the lion’s share of India’s Russian oil imports. RIL is understood to be steering clear of crude from both suppliers to avoid the risk of secondary US sanctions.

The decision is commercially and strategically consequential. Reliance is not just India’s largest fuel exporter; it has also been the country’s biggest buyer of discounted Russian crude since 2022, accounting for nearly half of Moscow’s oil shipments to India.

While pre-committed purchases are being honoured — the last cargo was loaded on November 12 — all subsequent Russian shipments will be routed only to the Domestic Tariff Area (DTA) refinery to ensure regulatory compliance.

Industry watchers say the shift could sharply reduce RIL’s intake of Russian crude going forward. With deep operational and financial links to the United States — including multiple US subsidiaries, dollar-denominated debt, and major strategic investments from American tech giants such as Google, Meta and Intel — Reliance is in no position to risk secondary sanctions.

The trend aligns with a long-standing pattern: Indian refiners, heavily exposed to the US financial system, have historically avoided lifting oil from producers under Washington’s sanctions, including Iran and Venezuela. Analysts now expect a similar industry-wide recalibration regarding Russian producers under the scanner.

For global energy markets, Reliance’s pivot underscores a broader reality — diplomatic pressure, sanctions and financial risk are now reshaping traditional oil trade routes faster than price incentives can hold them together.