India’s Reliance Stops Russian Oil Imports as Global Pressure Mounts

Reliance Industries, India’s largest conglomerate and the country’s biggest importer of Russian crude, has halted purchases of Russian oil for its export-only refinery in Jamnagar, Gujarat. The shift comes ahead of stricter global rules targeting Russian oil flows and marks a major step in easing tensions between New Delhi and Western partners.

The move ensures compliance with a new EU ban on fuel refined from Russian crude, even when processed in third countries, beginning 21 January 2026. It also aligns with fresh U.S. sanctions on Russia’s oil giants Rosneft and Lukoil, coming into effect this Friday.

Reliance said the transition was completed ahead of schedule “to ensure full compliance” with upcoming restrictions. The White House welcomed the decision, calling it a “positive shift” and expressing hope that it will support progress in ongoing U.S.–India trade discussions.

A key geopolitical sticking point

India’s Russian oil imports had ballooned since the Ukraine war, rising from 2.5% of total imports before the conflict to nearly 36% in 2024–25. Reliance alone accounted for about half of all Russian crude flowing into India.

This surge became a major source of friction with Washington. Earlier this year, President Trump imposed 50% tariffs on Indian goods, including a 25% penalty directly tied to India’s Russian oil and arms purchases.

While India has repeatedly rejected accusations that it was indirectly supporting Moscow’s war, pressure has steadily mounted from the U.S. and Europe.

Signs of a broader pullback

Recent data shows India’s oil refiners are already shifting away from Russia:

• Reliance cut its orders of Russian crude from sanctioned firms by 13% in October.

• Imports from Saudi Arabia jumped 87%, while purchases from Iraq rose 31%.

• State-run refineries have reportedly skipped Russian crude entirely for December contracts.

Analysts say the trend is driven by sanctions risk, insurance complications for tankers, and shrinking discounts on Russian barrels.

A trade breakthrough on the horizon?

Policy experts argue that India’s sharp cuts in Russian oil imports should now prompt Washington to roll back the additional tariffs.

“Maintaining the tariff despite India meeting U.S. expectations undermines goodwill,” said Ajay Srivastava of GTRI, warning it could slow sensitive trade negotiations.

Talks on a larger U.S.–India trade agreement have been strained for months, largely because of India’s energy ties with Russia. With Reliance, the biggest player, now shifting away from Russian crude, diplomats hope the path to a deal is finally clearing.