Reliance Industries Ltd (RIL) has stopped importing Russian crude oil into its export-focused Special Economic Zone (SEZ) refinery in Jamnagar from November 20.
This is to complete a strategic realignment of feedstock sourcing well ahead of the European Union’s new rules that take effect in January. The shift positions India’s largest private refiner to maintain uninterrupted access to its most lucrative export markets.
The EU will, from January 21, prohibit imports of petroleum products refined from Russian crude—even when processed in third countries such as India. Exporters must furnish clear proof that their supplies are derived solely from non-Russian oil. Given that Europe is a key buyer of RIL’s diesel, jet fuel and other clean products, the company has opted for early compliance to avoid any trade disruptions.
An RIL spokesperson said all Russian crude imports into the SEZ unit have ceased and that, from December 1, “all product exports from the SEZ refinery will be obtained from non-Russian crude oil”. The company emphasised that its SEZ facility operates in a fully segregated manner, with crude sourcing, storage and processing strictly ring-fenced from its Domestic Tariff Area (DTA) refinery.
The timing of the move also aligns with tightening US sanctions. Washington’s wind-down deadline for dealings with Russian oil majors Rosneft and Lukoil ends onNovember 21. Both firms together supply the bulk of India’s Russian oil, and RIL holds a sizeable term contract with Rosneft. With significant exposure to US financial markets, technology partnerships, and dollar-linked borrowings, RIL cannot risk secondary sanctions that could affect its global operations. Indian refiners have historically stepped back from Iranian and Venezuelan crude under similar circumstances.
RIL said it will honour all Russian cargoes contracted before October 22, with the final shipment loaded on 12 November. Any consignments arriving after November 20 will be diverted to the DTA refinery for processing, ensuring compliance with EU restrictions while allowing obligations under pre-existing deals to be met.
The shift comes amid strong import activity. India’s crude oil imports rose nearly 9 percent month-on-month in October to a six-month high of 20.28 million tonnes, supported by discounted Russian barrels and seasonal demand. However, flows from Russia are expected to moderate from November following US sanctions on two major suppliers, prompting refiners including RIL, Mangalore Refinery and HPCL-Mittal Energy to halt further Russian purchases and explore alternative sourcing options.
