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 reorganized the supply of crude oil at its export-oriented refinery in Jamnagar, stopping oil imports from Russia from November 20 and switching entirely to non-Russian crude ahead of strict European Union (EU) rules coming into force in January 2026.
This change of the private sector giant emerged as the West’s sanctions against Russian-origin oil products tightened and the US pressure on the agreements made with Rosneft and Lukoil increased.
Why did RIL stop importing Russian crude oil to its SEZ refinery?
The company confirmed that all Russian crude oil imports to its Special Economic Zone (SEZ) refinery have been suspended and exports from the unit are now entirely sourced from non-Russian oil.
An RIL spokesperson said: “RIL has stopped importing Russian crude oil into our SEZ refinery with effect from November 20. From December 1, all product exports from the SEZ refinery will be 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 January 21, 2026.”
The export-only SEZ refinery 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 is it important?
From January 21, 2026, the European Union (EU) will ban the import of petroleum products refined from Russian crude oil, even if it has been refined in third countries such as India. Exporters must provide evidence to prove that the products they supply are not derived from Russian oil.
The EU is a key market for RIL’s fuel exports, making compatibility non-negotiable. In July, the bloc announced the measure as part of a broader package of sanctions designed to restrict Moscow’s revenue from global oil sales during the ongoing war in Ukraine.
How does RIL transport current Russian cargo?
RIL has confirmed that it will honor all pre-arranged shipments contracted before October 22.
“Given that all shipping arrangements were already in place, all previously committed removals of Russian crude oil as of October 22, 2025 have been fulfilled. The last such cargo was loaded on November 12,” the spokesman said. he said.
Cargoes arriving after November 20 will bypass the SEZ export refinery and be directed to the DTA refinery, where they can be processed without violating EU restrictions.
“All cargoes arriving on or after November 20 will be received and processed at our refinery in the Domestic Tariff Area (DTA). We believe that normally all operational activities associated with such oil supply transactions can be completed harmoniously.”
How do US sanctions against Rosneft and Lukoil affect this change?
The timing of RIL’s transition coincides with the end of the US-mandated wind-up period for all transactions with Russian oil majors Rosneft and Lukoil. The term expires on November 21.
Both companies handle the majority of India’s Russian oil imports, and RIL has a forward agreement with Rosneft for up to 0.5 million barrels per day.
With heavy 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 oil from countries such as Iran and Venezuela when sanctions threaten access to global banking channels. A similar pullback appears to be taking place from Russian suppliers.
India’s October crude oil imports rise to six-month high
According to Reuters, citing government data, India’s crude oil imports reached 20.28 million mt (the highest level since April), up nearly 9% month-on-month in October and up 3.7% compared to the previous year.
While raw product imports decreased by 7.1% annually to 4.35 million tons, product exports increased by 1.4% to 5.12 million tons. Analysts say this increase is supported by discounted Russian cargoes and seasonal strong fourth quarter demand.
Preliminary ship tracking data from Kpler and OilX shows India’s crude oil imports from Russia were slightly higher in October than in September, but the flow is expected to slow down from November following US sanctions on two major Russian suppliers. Reuters the report says.
While Reliance Industries, Mangalore Refinery and HPCL-Mittal Energy have already stopped oil purchases from Russia, other refiners are also considering alternatives that are not currently approved.
India, the world’s third-largest oil importer, has been the largest buyer of seaborne Russian crude since 2022, bringing in 1.9 million barrels per day (about 40% of Russia’s shipments) in the first nine months of 2025, according to the IEA.
