India’s Reliance Industries is expected to restart receipt of Russian crude oil in February and March after a pause of about a month.
Reliance operates the Jamnagar refining complex in Gujarat, described by Reuters as the world’s largest. The company has been India’s biggest private buyer of discounted Russian barrels since Moscow’s full-scale invasion of Ukraine in 2022 reshaped global crude flows and prompted Western sanctions and price-cap measures on Russian exports.
The resumption follows a period of uncertainty around supply and compliance. Reuters reported in early January that Reliance had not received any Russian cargoes for three weeks and did not expect deliveries during January, a step likely to pull India’s overall Russian crude imports sharply lower.
Shift to “sanctions-compliant” cargoes
According to Reuters’ January 21 report, Reliance’s February and March volumes are expected to come from sellers that are not under sanctions, rather than from sanctioned counterparties. The sources did not disclose the number of cargoes booked for the two months.
Reuters also said it is unclear whether Reliance will continue buying Russian crude after March. The absence of clarity reflects the wider reassessment among Indian refiners following tighter sanctions enforcement and changing commercial risks associated with Russian-origin oil and shipping.
Reliance has not publicly detailed its procurement plans for the period beyond March. The company has, however, previously adjusted its crude slate in response to sanctions timelines and destination-market rules for refined products.
The Rosneft wind-down and a US concession
Reliance’s pause and planned restart sit against the background of US sanctions targeting major Russian oil producers and related dealings. Reuters reported on December 24 that Reliance obtained a one-month concession from Washington allowing it to continue receiving cargoes supplied by Rosneft while it wound down pre-existing transactions after a wind-down deadline of November 21.
In late October, Reuters reported that Reliance would halt imports under its long-term arrangement with Rosneft following US sanctions on the Russian producer.
Industry sources quoted by Reuters have previously described Reliance as having a long-term agreement to buy roughly 500,000 barrels a day of Russian crude for the Jamnagar complex, though actual monthly buying has varied with market conditions, freight availability, and sanctions constraints.
EU market access and refining choices
A key factor for Reliance is access to export markets for refined products. Reuters has reported that EU rules taking effect from January 21 restrict the bloc from accepting certain fuels produced at refineries that processed Russian crude within a defined period before shipment documentation, creating an additional compliance layer for refiners selling into Europe.
In its January 21 report, Reuters said Reliance intended to process the resumed Russian deliveries at an India-focused plant within the Jamnagar system, while preserving market access for exports from its export-oriented refinery. The reported approach points to a separation of feedstocks and product streams within the complex, allowing the group to maintain a presence in multiple markets while limiting sanctions exposure.
Reliance runs one of the most sophisticated refining and petrochemicals operations globally and is able to process a wide range of crude grades. That flexibility has helped Indian refiners take advantage of Russian discounts in recent years, while also switching to Middle Eastern and other supplies when compliance or logistics risks rise.
Wider Indian buying expected to stay muted
Even with Reliance’s planned restart, Reuters reported that broader Indian purchases of Russian crude were expected to remain low during February and March, as refiners increased sourcing from the Middle East in response to sanctions uncertainty and the risk of disrupted deliveries.
Indian state refiners and private buyers have periodically turned to spot cargoes from Abu Dhabi, Qatar and other suppliers when Russian flows tightened. Reuters reported in November that Reliance had secured multiple Middle Eastern cargoes to replace Russian supplies during the period when sanctions compliance was under review.
A volatile policy backdrop
The policy environment for Russian oil trade remains fluid. Reuters reported in January that Reliance’s pullback came as the US administration signalled tougher scrutiny and warned of possible trade consequences linked to ongoing purchases of Russian crude.
For Reliance, the return to Russian barrels via non-sanctioned sellers appears designed to keep optionality while staying within the boundaries set by sanctions rules and import restrictions in key product markets. Whether the company extends those purchases beyond March will likely depend on a combination of pricing, shipping availability, enforcement risk and the evolving stance of Western regulators.
