Is this the end of Russian oil for Reliance? Sanctions, tech ties forcing rethink, says report

Reliance Industries Ltd (RIL), India’s largest buyer of Russian crude, is reportedly scaling back oil imports from sanctioned Russian entities in a bid to comply with Western sanctions and protect its access to key U.S. and European markets, The Economic Times has reported.

In October, Reliance cut Russian crude imports to 534,000 barrels per day (bpd), a 24% drop from September and 23% below its April–September average, according to energy analytics firm Kpler. Russia’s share in Reliance’s crude mix fell sharply to 43%, down from 56% the previous month.

To compensate for the shortfall, Reliance ramped up purchases from the Middle East. Saudi oil volumes surged 87%, while Iraqi imports rose 31%, bringing their combined share to 40% of RIL’s crude basket in October — up from 26% in September. Imports from the United States also nearly doubled, reaching 10% of the company’s intake.

The decline in Russian crude was reportedly driven by a combination of existing geopolitical pressures and the anticipation of fresh U.S. sanctions on Russian oil majors Rosneft and Lukoil — measures that take full effect after a November 21 wind-down deadline. While the crude imported in October would have been ordered as early as August, sources cited by ET said Reliance is preparing to halt new cargoes from entities under sanctions.

“RIL just can’t afford to violate sanctions. It has too much exposure to the US,” one person told the publication, highlighting the conglomerate’s tech partnerships with major U.S. firms.

The company has not issued a formal comment, but last week confirmed that it will comply with international sanctions. Business Today could not independently verify these developments, and the story will be updated following responses from Reliance Industries.

Meanwhile, Rosneft-backed Nayara Energy — another major Indian refiner — reportedly increased its Russian crude intake last month, remaining heavily reliant on Russian supplies.

An EU clarification last month outlined how refineries may continue exporting to Europe even after importing Russian crude, provided the product can be proven to have been refined separately or not touched by Russian oil in the past 60 days.