India’s top private oil company, Reliance Industries, has announced it will no longer use Russian crude oil at one of its major refineries. This move comes as the company rushes to meet the new sanctions imposed by the US and the EU.
Since the onset of the Ukraine war in 2022, India has become the largest importer of inexpensive Russian crude oil. Earlier this year, US President Trump criticized India for its ties to Russia and raised tariffs due to growing trade tensions.
Despite these pressures, Indian firms continued to buy Russian oil until sanctions against major producers like Rosneft and Lukoil were intensified in October. These sanctions officially took effect on a recent Friday.
Reliance’s decision to halt Russian oil imports aligns with the forthcoming EU restrictions slated for January 21, 2026, which will prohibit EU companies from purchasing products made from Russian crude.
“We have stopped importing Russian crude oil into our SEZ refinery effective November 20,” said Reliance. “Starting December 1, all product exports from this refinery will come from non-Russian crude oil.”
A source close to the company confirmed that Reliance would cease all further purchases of oil from Russia.
The SEZ, or Special Economic Zone, in western India is one of Reliance’s two refining complexes, which collectively process over half of its total annual crude input of 68.5 million metric tonnes, mainly for export.
Before the war, Russia was a minor supplier to India, but since April 2022, India has imported over $145 billion worth of Russian crude, becoming the largest buyer of seaborne Russian oil.
Reliance, owned by Asia’s richest man Mukesh Ambani, has led the way in importing discounted Russian crude in recent years. The company has accrued nearly $6 billion in profits by processing this cheaper oil and exporting it to markets in Europe and the US.
In December, Reliance even signed a long-term contract with Rosneft to acquire nearly 500,000 barrels each day.
While Reliance confirmed it will no longer purchase Russian crude, some oil bought prior to the sanctions is still being delivered and will be processed at its second refinery, which caters to the domestic market, with the last cargo arriving on November 12.
In August, the Trump administration accused India of supporting Russia and increased trade tariffs to 50%. Discussions continue between Washington and Indian Prime Minister Narendra Modi’s administration regarding a pending trade deal.
To ease relations with the US, India has recently taken steps to increase its purchase of liquefied petroleum gas from the US. India’s Oil Minister announced the signing of a structured contract for US LPG in the Indian market.