Reliance stops Russian oil buys

Move comes ahead of US sanctions that kick in today

- SHUBHANGI MATHUR

Mukesh Ambani-led Reliance Industries Ltd (RIL) has stopped import of Russian crude oil into its Special Economic Zone (SEZ) refinery in Jamnagar, Gujarat, with effect from November 20, the company said in a statement late Thursday evening. This comes hours before the United States' sanctions on Russian oil companies Rosneft and Lukoil are supposed to come into effect (from November 21).

The two sanctioned entities account for 60-70 per cent of India's Russian oil import. RIL had a long-term contract to purchase nearly 500,000 barrels per day (bpd) from Rosneft, which owns 49 per cent in Nayara Energy.

With most Indian oil firms now suspending Russian oil purchases, it could pave the way for a reconsideration of the 25 per cent penal tariffs on Indian goods shipped to the US. The development potentially sets the stage for an Indo-US bilateral trade agreement that could ease the 25 per cent reciprocal tariff.

Reliance also said that its petroleum products exports from the SEZ refinery would be obtained from non-Russian crude oil to ensure full compliance of the European Union (EU) restrictions coming into force on January 21, 2026.

Under the EU’s 18th sanctions package announced in July, the bloc banned imports of refined oil products derived from Russian crude into Europe.