Reliance halts Russian crude processing at Jamnagar export refinery to comply with EU sanctions

Reliance recalibrates Russian oil imports, ending use at its export refinery ahead of the EU’s 2026 refined fuel ban

November 21, 2025

Reliance ends Russian crude processing for exports ahead of 2026 EU ban

Reliance cuts Russian oil to comply with global sanctions; Jamnagar shift complete

Reliance Industries Ltd (RIL) has stopped using Russian crude at its export-only refinery in Jamnagar, Gujarat, as part of a compliance push following expanded sanctions from the European Union. The company confirmed that imports of Russian oil into its Special Economic Zone (SEZ) refinery ceased on November 20.

Reliance is India’s largest buyer of discounted Russian crude, which it processes at the world’s biggest single-site refining complex in Jamnagar. The facility consists of two units — the SEZ refinery that produces fuels solely for export to markets such as the EU and the US, and an older Domestic Tariff Area (DTA) refinery that supplies the Indian market.

EU sanctions force recalibration

The European Union has imposed sweeping restrictions targeting revenues from Russia’s energy exports, including a ban on the sale of fuels refined from Russian crude starting January 2026. Since the EU is one of Reliance’s biggest export markets, the company has halted Russian crude use in the SEZ unit to ensure full compliance.

“From December 1, all product exports from the SEZ refinery will be obtained from non-Russian crude oil,” a Reliance spokesperson said. The company added that it is currently processing existing inventories of Russian crude, but once these run out, all output for export markets will be produced from alternative feedstock.

Reliance said the transition was completed ahead of schedule to align with upcoming EU product-import restrictions.

US sanctions on Rosneft and Lukoil accelerate shift

The shift comes after the US sanctioned Russia’s two largest oil producers — Rosneft and Lukoil — accusing them of funding the Kremlin’s “war machine” in Ukraine. In October, Reliance said it would adjust refinery operations to ensure compliance with restrictions announced by the EU, UK and US.

Reliance signed a 25-year contract with Rosneft for up to 500,000 barrels per day of crude supply. But the firm has been steadily reducing Russian imports since the US sanctions were issued, given its significant business presence in the American market.

Segregated refining and final Russian cargo

The company said the SEZ refinery operates as a fully segregated system. All pre-committed Russian cargoes contracted before October 22, 2025, are being honoured, with the last such shipment loaded on November 12. Any Russian crude arriving on or after November 20 will be diverted to the domestic DTA refinery instead of the export-oriented SEZ unit.

Russian oil volumes and India’s dependence

Russia currently supplies nearly one-third of India’s crude imports — around 1.7 million barrels per day in 2025, of which 1.2 million barrels per day come directly from Rosneft and Lukoil. Much of this volume is purchased by Reliance and Nayara Energy, with the rest allocated to state-owned refiners.

Reliance alone has imported an estimated USD 35 billion worth of Russian oil since the Ukraine war began in February 2022. Industry sources say its ongoing “recalibration” — shifting imports to other regions — may now accelerate due to tightened sanctions.

Impact on margins

Reliance has generated strong margins by refining discounted Russian crude into petrol, diesel and aviation turbine fuel (ATF), then exporting them at global market prices. The new rules could change that dynamic, potentially pushing refiners toward new supply sources as sanctions reshape global crude flows.

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