RIL stops importing Russian crude oil for export-oriented SEZ refinery

Stoppage of Russian crude imports comes a day before US sanctions against Rosneft and Lukoil kick in; however, RIL said it is honouring all previously-agreed shipments of Russian crude as of Oct 22

Reliance Industries (RIL) on Thursday said it has stopped importing Russian crude oil for processing at its Special Economic Zone (SEZ) refinery, transitioning fully to non-Russian feedstock for exports, ahead of upcoming US and European Union (EU) restrictions on product imports.

 

“We have 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 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 January 21 2026,” a Reliance statement said.

 

The company said the SEZ refinery receives crude through a segregated supply chain that is dedicated to the production line within the zone.  

The US Treasury Department had on October 22 imposed a November 21 deadline for private refineries to stop purchasing Russian crude oil, particularly from Rosneft and Lukoil, two of Russia’s largest producers of crude. 

India has been one of the top buyers of discounted Russian crude oil, while RIL was one of the top Indian buyers. US President Donald Trump has highlighted India's purchases of Russian oil a number of times as a justification for 25 per cent punitive tariffs he slapped against it for such imports, saying they contributed to the war against Ukraine.     According to the RIL statement, the company is honouring all previously agreed shipments of Russian crude as of October 22, as logistics and transport arrangements were already in place. “The final such cargo was loaded on November 12,” the company added.

 

“The final such cargo was loaded on 12 November. 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,” the statement added.

 

Why has RIL shifted away from Russian crude at its SEZ refinery?

 

Reliance, India’s biggest buyer of Russian crude, processes the oil at its large Jamnagar complex, which houses two refineries — an SEZ unit that exports fuel to Europe, the United States (US) and other markets, and an older plant supplying the domestic market. The EU, a key destination for Reliance’s fuel shipments, has introduced sanctions restricting imports of products made from Russian-origin crude.

 

What triggered this transition in Reliance’s refinery operations?

 

The development comes nearly a month after the conglomerate said it would adjust its refinery operations to comply with the latest sanctions imposed by the US, the United Kingdom and the European Union on the import of Russian oil, following sweeping US penalties on major Russian producers Rosneft and Lukoil.