Reliance Industries Resumes Purchases of Discounted Russian Crude, Routing Supplies to Gujarat Refinery
NEW DELHI: India’s largest private refiner, Reliance Industries Ltd., has resumed imports of discounted Russian crude oil, sourcing barrels from non‑sanctioned suppliers and directing the shipments to its refinery in Gujarat, according to people familiar with the matter. The Economic Times+1
After briefly pausing purchases following U.S. sanctions on key Russian producers Rosneft and Lukoil in October, Reliance has returned to the Russian crude market by securing supplies that do not violate existing sanctions, Bloomberg reported. The Economic Times
How the Imports Are Being Routed
The company has contracted Aframax tankers through trader RusExport to bring the Russian oil to its 660,000‑barrel‑per‑day refinery in Jamnagar, Gujarat, which primarily serves domestic fuel demand. Officials said the move is expected to limit the anticipated drop in India’s overall Russian oil imports, which were forecast to fall sharply following Western sanctions. The Economic Times
Reliance previously paused its Russian crude purchases after the U.S. Treasury sanctioned Rosneft and Lukoil on October 22, giving refiners a 30‑day window to wind down operations with the sanctioned firms. During that pause, imports declined as companies adjusted to the new restrictions. ETEnergyworld.com
Context of Sanctions and Strategy
The U.S. sanctions were aimed at curbing Moscow’s oil revenue amidst the ongoing war in Ukraine, pushing many buyers to reconsider their Russian oil strategies. In response, Indian refiners — including Reliance — initially reduced purchases and looked to alternative sources or non‑sanctioned Russian suppliers. The Economic Times
Reliance’s return to the Russian crude market marks a recalibration, blending compliance with sanctions while securing discounted energy supplies for the domestic market. The refinery’s export‑oriented units, however, have already stopped processing Russian crude to comply with European Union restrictions on fuels derived from Russian oil, a separate set of sanctions that took effect later in 2025. The Indian Express
Market Impact
Officials estimate that India’s imports of Russian crude could still drop significantly this month as market sources shift and sanctions bite. The move by Reliance to tap non‑sanctioned supply lines may soften the effect but is unlikely to return imports to pre‑sanction levels. The Economic Times
Analysts say that how Western sanctions evolve — including potential future restrictions on shipping and financing for Russian oil — will continue to shape the strategies of refiners like Reliance in the coming months.