Reliance Industries Ltd (RIL) on Thursday said it has stopped using Russian crude at its export-only refinery in Jamnagar, Gujarat. The company has taken this decision due to European Union (EU) restrictions. Reliance is India’s largest buyer of Russian crude, which it refines at its massive refinery in Jamnagar and converts it into fuels like petrol and diesel. The complex is made up of two refineries – an SEZ unit that exports fuel to the EU, US and other markets, and a legacy unit that caters to the domestic market.
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The European Union is a big market for Reliance and has imposed large-scale sanctions targeting Russia’s energy revenues. It also includes measures restricting the export and sale of fuel made from Russian crude oil. In such a situation, Reliance has stopped refining Russian crude oil in its export-only SEZ refinery. A company spokesperson said, “We have stopped importing Russian crude oil into our SEZ refinery from November 20.” Reliance said that from December 1, all products exported from its SEZ refinery will be made of non-Russian crude oil.
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adjusting to restrictions
Last month, when the US imposed sanctions on Rosneft and Lukoil, Russia’s biggest oil exporter, the firm said it would comply with all applicable sanctions and adjust its refinery operations to meet compliance requirements.
“We have noted the recent restrictions imposed by the European Union, the United Kingdom and the United States on imports of crude oil from Russia and exports of refined products to Europe. Reliance is currently assessing its impact, including the new compliance requirements,” Reliance had said on October 24.
Reliance, which runs the world’s largest single-site oil refining complex at Jamnagar in Gujarat, bought about half of the 1.7-1.8 million barrels per day of discounted Russian crude shipped to India. The company refines crude into petrol, diesel and aviation turbine fuel (ATF), a large portion of which is exported to regions like Europe and the United States at market prices, earning good margins.
All this could change as US President Donald Trump imposes sanctions on Open Joint Stock Company Rosneft Oil Company (Rosneft) and Lukoil OAO (Lukoil) – Russia’s two largest oil companies which he accuses of helping fund the Kremlin’s “war machine” in Ukraine. Apart from this, the European Union has banned the import of fuel made from Russian crude from January 2026.
Reliance had said, “We will follow EU guidelines on import of refined products into Europe.”
On Thursday, the firm said the crude oil import facility at the SEZ is a completely separate facility that caters to the production line at the SEZ. “All previously agreed lifting of Russian crude oil until October 22, 2025 is being respected, given that all transport arrangements were already in place.”
“The last such cargo was loaded on November 12. Any (Russian) cargo arriving on or after November 20 will be received and processed at our refinery in the Domestic Tariff Area (DTA),” it said. “We believe that all operational activities related to such oil supply transactions can be completed in accordance with regulations.”
Reliance, which has signed a 25-year deal with Rosneft to buy up to 500,000 barrels of crude a day (25 million tonnes a year), has been cutting imports from Russia following the US ban. The company has huge business interests in the US and cannot take the risk of investigation.
The company has also started “recalibration” of its imports soon after the European Union adopted the 18th package of sanctions against Moscow in late July this year. Recalibration is nothing but moving the import requirement to a different region. And industry sources said that now it may accelerate.Transactions related to the two Russian companies that have been banned will have to be completed by November 21.
Russia currently supplies about a third of India’s crude imports, which will average about 1.7 million barrels per day (mbd) in 2025, of which about 1.2 mbd comes directly from Rosneft and Lukoil. Most of these volumes were bought by private refiners, Reliance Industries Limited and Nayara Energy, with a lesser share given to state-owned refiners.
