India’s largest conglomerate, Reliance Industries, owned by billionaire Mukesh Ambani, has officially ceased the import of Russian crude oil for its export-only refining unit located at Jamnagar in Gujarat. This landmark decision marks a significant shift in India’s relationship with Russian energy imports.
The move, which was completed ahead of schedule, aims to ensure full compliance with sweeping new global sanctions and restrictions:
EU Ban: The action aligns with an upcoming EU ban on fuel imports made from Russian oil via third countries, set to take effect on January 21, 2026.
US Sanctions: It also pre-empts US sanctions targeting major Russian oil producers Rosneft and Lukoil, scheduled to kick in this Friday.
In a statement, Reliance confirmed, “This transition has been completed ahead of schedule to ensure full compliance with product-import restrictions coming into force…”
🤝 White House Welcomes Reliance Russian Oil Ban
The White House immediately welcomed the shift by Reliance.
“We welcome this shift and look forward to advancing meaningful progress on US-India trade talks,” the White House press office stated.
Delhi’s massive purchases of discounted Russian oil had been a major source of tension between India and the US. In August, the US imposed a substantial 50% tariff on Indian exports, which included a 25% penalty specifically aimed at India’s purchase of Russian oil and arms. The US argued these purchases were funding Moscow’s war on Ukraine—a charge India has always denied.
📊 The Scale of India’s Russian Oil Shift
India’s imports of discounted Russian oil surged dramatically following the conflict in 2022, jumping from a mere $2.5\%$ of its total imports to a peak of around $35.8\%$ in 2024-25.
Reliance is India’s single largest importer of Russian oil, accounting for approximately 50% of all Russian oil flows into the country. The Jamnagar complex, the largest single-site refining complex globally, operates both export and domestic market units.
🔄 Geopolitical Pressure Forces a Pivot
Mounting global pressure appears to be succeeding after months of resistance from Delhi to reduce its dependency on Russian oil. Reports indicate that refiners across India have been lowering their imports over the past couple of months.
Reliance, specifically, reduced orders from sanctioned Russian companies by $13\%$ while simultaneously increasing monthly imports from Saudi Arabia by $87\%$ and Iraq by $31\%$ in October.
Indian state-controlled refineries are also reportedly skipping Russian crude imports for their December contracts.
🔔 Trade Deal Concessions Expected
Given India has now sharply curtailed its imports, trade experts are demanding a reciprocal gesture from the US.
Ajay Srivastava of the Global Trade and Research Initiative (GTRI) think-tank stated that Washington must “immediately scrap the additional $25\%$ tariff on Indian goods.”
He warned that “Maintaining the tariff despite India meeting US expectations undermines goodwill and risks slowing already delicate trade negotiations.” This major geopolitical compliance move is expected to clear a path forward for the broader, long-stalled trade deal negotiations between the two nations.
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