Reliance Industries Resumes Russian Oil Imports Through Non-Sanctioned Channels

Resumption of Russian Oil Imports

Reliance Industries Ltd., India's largest refiner, has resumed its purchases of discounted Russian crude oil. The company is now sourcing barrels from suppliers not under international sanctions, directing these shipments to its domestic-focused refinery in Jamnagar, Gujarat. This move, reported on December 24, 2025, follows a temporary pause in imports triggered by US sanctions against major Russian oil companies.

Navigating Sanctions and Waivers

The pause in purchases began after the United States imposed sanctions on Russian oil giants Rosneft PJSC and Lukoil PJSC in October 2025. These sanctions aimed to curb Russia's revenue streams. Indian refiners were initially given until November 21 to wind down transactions with these sanctioned entities. Reliance Industries, however, secured a temporary concession from the US, allowing it to receive pre-contracted cargoes until December 17. The final cargo under this arrangement arrived on that date.

To resume imports while adhering to the sanctions regime, Reliance has contracted Aframax tankers through RusExport, ensuring that the crude is sourced from non-sanctioned entities. A Reliance spokesperson stated that these were 'pre-existing transactions which are being wound down in a sanctions-compliant manner'.

Refinery Operations and Market Impact

The incoming Russian crude is being routed to Reliance's 660,000-barrel-per-day (bpd) refinery in Jamnagar, which primarily serves the domestic Indian market. Reliance also operates a separate export-oriented refinery at the same complex, with a capacity of 700,000 bpd (or 704,000 bpd). Russian oil arriving after November 20 has been exclusively processed at the domestic-focused unit.

This resumption is expected to mitigate a significant decline in India's overall Russian oil imports. Officials had projected a sharp drop from an average of 1.9 million bpd in November to approximately 800,000 bpd or between 1.2 million and 1.5 million bpd in December. India became the world's largest buyer of seaborne Russian crude following the invasion of Ukraine, capitalizing on the discounted prices, which have often been $5-6 per barrel below Brent.