Synopsis:
Reliance has stopped using Russian crude for exports at Jamnagar SEZ to comply with new EU sanctions with 2026 as the deadline. Russian crude received after November 20 will be used only for domestic refining as the company phases out earlier long-term supply deals under tightening US and EU restrictions.
Earlier this year, The European Union tightened its Russia-related energy restrictions by expanding sanctions to ban not only the import of Russian crude oil but also banning fuels refined from Russian oil, which could be even the ones processed in a third country. Following this in the month of October the United States had imposed fresh sanctions on two major Russian oil producers- Rosneft and Lukoil, which further escalated global pressure on Russia’s energy revenues this has been done as a broader measure linked to the Ukraine conflict.
What’s the News?
On 20 November 2025, Mukesh Ambani led Reliance Industries announced that it will halt imports of Russian crude at its Jamnagar refinery in order to comply with EU sanctions. Furthermore, the company confirmed that Russian oil imports into the SEZ unit will be stopped from November 20 2025, and from December 1 all the export-bound fuels will be produced only from non-Russian crude oils.
Reliance is honouring all pre-booked cargoes until the final shipment loaded on November 12, while any Russian crude arriving after November 20 will be diverted to the Domestic Tariff Area (DTA) refinery, which serves the Indian market. Reliance operates two refineries in Jamnagar and was one of the largest Indian buyers of discounted Russian oil, purchasing up to 500,000 barrels per day under a long-term deal with Rosneft and accounting for nearly half of all Russian oil shipped to India. The company said it has an impeccable compliance record and is recalibrating its crude sourcing strategy in line with EU rules and US sanctions on Russian producers, along with the Government of India guidelines.
The Sanctions
In July 2025, The European Union had significantly tightened its Russian energy sanctions by extending restrictions not only on the Russian crude oil but even on fuels made from the Russian oil, even the ones that are refined in third countries.
This expanded rule comes into effect in January 2026, and is aimed at closing loopholes that previously allowed Russian-origin crude to enter Europe after being processed elsewhere.
Post this in October 2025, the United States intensified the pressure by imposing new sanctions on major Russian oil producers- Rosneft and Lukoil. The US also set strict wind-down deadlines for global buyers and refiners to terminate dealings with these companies, raising compliance risks across the global energy supply chain. Additional president Trump has imposed a 25 percent tar
The EU and US have been doing so in order to restrict Russia’s ability to earn revenue from oil, as it is its most important export, and this would result in reducing the funds available to support the war happening in Ukraine. By closing loopholes and targeting companies involved in production and trading, the west is trying to increase economic pressure on Moscow, by forcing global refiners and buyers to shift away from Russian supplies of oil.
Reliance Industries Ltd was established in 1966 as a polyester manufacturer, later expanded into the oil and gas sector in 1993, which today contributes around 57 percent of its total revenue. The company operates the world’s largest single-site refinery complex at Jamnagar, which plays a major role in the Indian energy landscape.
Written by Adithya Menon
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