EU restrictions put spotlight on Reliance’s Russian oil imports
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Reliance Industries Ltd., India’s largest private refiner owned by billionaire Mukesh Ambani, is facing renewed scrutiny after the European Union introduced fresh restrictions targeting diesel produced from Russian crude.
The new EU sanctions, announced Friday, have triggered a shift in Reliance’s procurement strategy.
According to traders, the company made a rare purchase of Abu Dhabi’s Murban crude shortly after the sanctions were unveiled — a move seen as an early signal of its efforts to reduce dependence on Russian oil. Murban is a premium grade, typically more expensive than the Russian Urals and heavier Middle Eastern crude that Reliance usually favors.
Individuals familiar with Reliance’s import strategy, who spoke on the condition of anonymity, said the company has begun exploring alternative sources as it reassesses its reliance on Russia — currently its largest supplier of crude oil in 2025.
So far this year, Russia has accounted for nearly half of Reliance’s crude imports, according to ship-tracking data from Kpler. The company has been one of the major beneficiaries of the geopolitical fallout from Moscow’s 2022 invasion of Ukraine.
As Europe distanced itself from Russian energy, Indian refiners, including Reliance, capitalised on the discounted prices, boosting imports and refining the crude into diesel for export — often to Western markets.
Roughly one-fifth of Reliance’s total fuel exports have gone to Europe, placing the company directly in the crosshairs of the EU’s new policy, which prohibits diesel refined from Russian oil from entering the bloc beginning January 21 next year.
While it remains unclear how drastically Reliance will shift its sourcing, traders have noted early signs of a pivot toward Middle Eastern suppliers.
However, they caution that replacing the approximately 600,000 barrels per day that Reliance currently sources from Russia will be a complex and costly challenge.
India has voiced concerns over the EU’s latest move.
On Tuesday, India’s Foreign Secretary Vikram Misri stated that “there was a need for ‘balance’ when secondary sanctions are imposed on the purchase of Russian oil and gas.”
Reliance has yet to officially comment on the developments.
