Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
India’s largest private oil refiner, Reliance Industries, has said it has stopped using Russian crude at one of its largest refineries, as it rushes to comply with US and EU sanctions.
India had become the biggest buyer of cheap seaborne Russian crude since the full-blown war in Ukraine started in 2022. US President Donald Trump this year criticised India for supporting Moscow and imposed an extra tariff on New Delhi as trade tensions soared.
Despite the pressure from Washington, Indian companies had continued to import oil from Russia until Trump escalated sanctions against Russian producers Rosneft and Lukoil in October. The sanctions took effect on Friday.
Reliance is stopping Russian oil imports ahead of expanded EU restrictions on crude from Russia. Beginning on January 21 2026, EU companies will be banned from buying and importing petroleum products made from Russian crude from third countries.
“We have stopped importing Russian crude oil into our SEZ refinery with effect from 20 November,” Reliance said. “From 1 December, all product exports from the SEZ refinery will be obtained from non-Russian crude oil.”
A person close to the company said that Reliance would not make further oil purchases from Russia.
The SEZ, or Special Economic Zone, is one of two refining complexes the company runs in western India, processing just over half of its 68.5mn metric tonnes of crude per year, primarily for export.
Russia was a marginal supplier of crude to India before the war in Ukraine. But Indian government data shows that since April 2022, just after Moscow’s full-scale invasion, India has imported Russian crude worth more than $145bn, making it the largest buyer of Russian seaborne crude.
Reliance, which is owned by Asia’s richest man, Mukesh Ambani, has been the largest importer of discounted Russian crude over the past three years, according to data and analysis consultancy Energy Aspects.
During that time, the company has made a windfall of close to $6bn by processing the cheaper Russian oil and exporting it to markets including Europe and the US, according to the consultancy.
The company signed a 10-year contract with Rosneft last December to buy nearly 500,000 barrels of oil per day.
Reliance said that some Russian oil it purchased before the latest sanctions were announced was still being delivered. The company said it would process those barrels at its second refinery, which serves the domestic market, and they would not be exported. The last such cargo was loaded on November 12, it said.
In September, Trump accused India of funding Moscow’s war machine and doubled trade tariffs to 50 per cent. Washington and Indian Prime Minister Narendra Modi’s government remain locked in negotiations over a long-sought trade deal.
India, which is dependent on oil and gas imports, has recently made moves to placate Washington. Earlier this week, New Delhi said it would increase purchases of US liquefied petroleum gas. Hardeep Singh Puri, India’s oil minister, on Monday announced what he called the “first structured contract of US LPG for the Indian market”.
