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Reliance halts Russian oil imports ahead of EU and US sanctions
India's Reliance Industries, led by billionaire Mukesh Ambani, has ceased importing Russian crude oil for its export-focused refinery in Jamnagar, Gujarat, ahead of stricter international sanctions set to take effect in early 2026.
The decision aligns with an upcoming EU ban on fuel imports derived from Russian oil via third countries, scheduled for January 21, 2026, as well as US sanctions targeting Rosneft and Lukoil, which begin this Friday. Reliance confirmed in a statement that the transition was completed early to ensure full compliance with the new restrictions.
US welcomes move amid trade tensions
The White House praised Reliance's decision, calling it a step forward in US-India trade relations. "We welcome this shift and look forward to advancing meaningful progress on US-India trade talks," the White House press office told the Washington Post.
India's continued purchases of Russian oil have been a persistent point of contention with the US. In August, former President Donald Trump imposed a 50% tariff on Indian goods, including a 25% penalty specifically for buying Russian oil and arms, accusing Delhi of funding Moscow's war in Ukraine-an allegation India has repeatedly denied.
India's shifting oil import trends
India's reliance on discounted Russian crude surged following the 2022 invasion of Ukraine, rising from just 2.5% of imports pre-war to 35.8% in 2024-25. Reliance, India's largest importer of Russian oil, accounted for roughly half of these flows.
The Jamnagar refinery, the world's largest single-site refining complex, operates two units-one dedicated to exports and another for domestic supply. Recent months have seen a broader reduction in Russian oil imports among Indian refiners, with Reliance cutting orders from sanctioned Russian firms by 13% in October while boosting imports from Saudi Arabia by 87% and Iraq by 31%, according to a Carnegie Endowment report. State-run refiners have also reportedly skipped Russian crude for December contracts.
Trade talks in focus as tariffs face scrutiny
Analysts argue that India's compliance with US demands should prompt Washington to reconsider its punitive tariffs. Ajay Srivastava, co-founder of the Global Trade and Research Initiative (GTRI), stated, "Maintaining the tariff despite India meeting US expectations undermines goodwill and risks slowing already delicate trade negotiations." He urged the US to "immediately scrap the additional 25% tariff on Indian goods."
The dispute over Russian oil purchases has long stalled broader US-India trade negotiations, but recent developments suggest a gradual easing of tensions. Whether this shift will accelerate talks remains uncertain.
