RIL halts Russian crude imports to SEZ refinery from 20 Nov, pivots to non-Russian oil exports ahead of EU ban

Reliance Industries Ltd (RIL) has realigned crude sourcing at its export-oriented refinery in Jamnagar, halting Russian oil imports from 20 November and transitioning entirely to non-Russian crude ahead of strict European Union (EU) rules taking effect in January 2026.

The private sector behemoth's shift comes as Western sanctions tighten on Russian-origin petroleum products and as US pressure mounts on dealings with Rosneft and Lukoil.

Why has RIL stopped importing Russian crude into its SEZ refinery?

The company confirmed that all Russian crude imports into its Special Economic Zone (SEZ) refinery have ceased, with exports from the unit now fully derived from non-Russian oil.

An RIL spokesperson said, "RIL have stopped importing Russian crude oil into our SEZ refinery with effect from 20 November. From 1 December, all product exports from the SEZ refinery will be obtained from non-Russian crude oil. This transition has been completed ahead of schedule to ensure full compliance with product-import restrictions coming into force on 21 January 2026."

The SEZ refinery—dedicated exclusively to exports—operates in a fully segregated manner, ensuring that crude imports, storage, and processing are isolated from the domestic tariff area (DTA) facility.

What is the EU’s new rule — and why does it matter?

From 21 January 2026, the European Union (EU) will ban imports of petroleum products refined from Russian crude, even if refined in third countries such as India. Exporters must produce evidence proving that the products they supply are not derived from Russian-origin oil.

The EU is a major market for RIL’s fuel exports, making compliance non-negotiable. In July, the bloc announced this measure as part of a wider sanctions package designed to curtail Moscow’s revenue from global oil sales amid the ongoing war in Ukraine.

How is RIL handling existing Russian cargoes?

RIL has confirmed it will honour all previously arranged shipments contracted before 22 October.

"All pre-committed liftings of Russian crude oil as of 22 October 2025 are being honoured, considering all transport arrangements were already in place. The final such cargo was loaded on 12 November," the spokesperson said.

Cargoes arriving after 20 November will bypass the SEZ export refinery and be diverted to the DTA refinery, where they can be processed without breaching EU restrictions.

"Any cargoes arriving on or after 20 November will be received and processed at our refinery in the Domestic Tariff Area (DTA). All operational activities ordinarily incident to such oil supply transactions can be completed, we believe, in a compliant way."

How do US sanctions against Rosneft and Lukoil factor into the shift?

The timing of RIL’s transition coincides with the end of a US-mandated wind-down period for all dealings with Russian oil giants Rosneft and Lukoil. The deadline expires 21 November.

Both companies account for the majority of India’s Russian oil imports, and RIL has a term deal with Rosneft for up to 0.5 million barrels per day.

With extensive exposure to the US financial system, technology partnerships with American majors, and dollar-denominated borrowings, the conglomerate cannot risk triggering secondary sanctions.

Industry observers note that Indian refiners have historically avoided crude from countries such as Iran and Venezuela when sanctions threatened access to global banking channels. A similar retreat from Russian suppliers appears underway.

India's October crude oil imports rise to six-month high

India’s crude oil imports rose nearly 9% month-on-month in October to 20.28 million metric tonnes — the highest since April — and were up 3.7% from a year earlier, Reuters reported citing government data.

While crude product imports fell 7.1% year-on-year to 4.35 million tonnes, product exports increased 1.4% to 5.12 million tonnes. Analysts say the rise was supported by discounted Russian cargoes and seasonally strong fourth-quarter demand.

Preliminary ship-tracking data from Kpler and OilX show India’s Russian crude imports in October were slightly higher than September, but flows are expected to slow from November following US sanctions on two major Russian suppliers, Reuters report says.

Reliance Industries, Mangalore Refinery and HPCL-Mittal Energy have already halted Russian oil purchases, while other refiners are now assessing non-sanctioned alternatives.

India, the world’s third-largest oil importer, has been the biggest buyer of seaborne Russian crude since 2022, bringing in 1.9 million bpd in the first nine months of 2025 — about 40% of Russia’s shipments, according to the IEA.