Photo by Kai Pilger
India’s largest conglomerate, Reliance Industries, owned by billionaire Mukesh Ambani, has fully discontinued the import of Russian crude oil for the export-focused refining unit at its Jamnagar complex in Gujarat’s western region.
This strategic shift is aimed at adhering to the European Union’s restrictions on fuel imports produced from Russian oil via intermediary countries, scheduled to take effect next year. It also aligns with upcoming US sanctions targeting major Russian producers such as Rosneft and Lukoil, expected to be enforced from Friday.
Reliance stated that the changeover to non-Russian sources was completed earlier than planned, ensuring compliance with product import rules coming into force from 21 January 2026.
The White House applauded the decision, saying, “We welcome this shift and look forward to advancing meaningful progress on US-India trade talks,” according to a statement issued to The Washington Post.
Tariffs and Oil Politics
India’s procurement of Russian oil has been a key tension point in its relations with Washington. In August, former US President Donald Trump imposed 50% tariffs on Indian exports, including a 25% additional levy citing Indian purchases of Russian oil and arms—claiming such transactions were indirectly supporting Russia’s war in Ukraine, an allegation firmly rejected by New Delhi.
Since the war began in 2022, India’s intake of discounted Russian crude surged dramatically—from just 2.5% of total imports pre-war, to around 35.8% in fiscal year 2024–25.
Reliance accounts for approximately half of all Russian oil shipments to India, making it the country’s largest importer of Moscow-sourced petroleum.
Jamnagar: Strategic Shift Under Global Pressure
The Jamnagar refinery, recognized as the largest single-location refining facility globally, operates two independent units—one for domestic supply and the other solely for exports.
Significant international pressure now seems to be yielding results. After resisting calls for months, India has recently narrowed its dependence on Russian oil. According to multiple analyses, refiners have scaled back purchases in recent months.
Data from a Carnegie Endowment report shows Reliance cut orders from sanctioned Russian suppliers by 13%, while stepping up purchases from Saudi Arabia by 87% and Iraq by 31% in October. Bloomberg also reported that Indian state-run refiners are bypassing Russian crude for December supply contracts.
Trade Negotiation Implications
With India now considerably reducing Russian imports, experts argue that the United States should promptly withdraw the additional 25% tariff on Indian goods. Ajay Srivastava of Global Trade and Research Initiative (GTRI) stressed that maintaining penalties despite India meeting US demands harms mutual goodwill and could hamper already fragile trade negotiations.
Talks over a broader US–India trade deal have long been impeded by India’s continued engagement with Russian fossil fuels. However, with the latest developments, there are signs of gradual easing in bilateral strain after a prolonged period of uncertainty.
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