Post by : Badri Ariffin

In a strategic move, India’s industrial giant Reliance Industries has stopped importing Russian crude for its export-only refinery in Jamnagar, Gujarat. The decision comes ahead of the European Union’s fuel import ban on Russian oil through third countries, set to take effect in January 2026, and aligns with upcoming US sanctions on major Russian oil producers.

Reliance said the transition was completed “ahead of schedule” to ensure full compliance with the forthcoming product-import restrictions. The Jamnagar complex, the world’s largest single-site refinery, operates separate units for domestic consumption and export, making this shift particularly significant.

The White House welcomed the move, noting it as a positive step in improving US-India trade relations. India’s growing reliance on discounted Russian oil had long been a point of contention, drawing penalties from the US and complicating bilateral trade negotiations. At its peak, Russian oil accounted for over a third of India’s crude imports, with Reliance responsible for roughly half of this flow.

Recent months have seen Indian refiners gradually reducing Russian oil imports while increasing procurement from Saudi Arabia and Iraq. Reports suggest Reliance cut its Russian orders by 13% in October, while imports from Saudi Arabia rose to 87% and Iraq to 31%. Even state-owned refineries are reported to be skipping Russian crude for December shipments.

The move appears to signal a broader recalibration in India’s energy sourcing strategy, reflecting mounting global pressure and a desire to smooth diplomatic and trade relations. Analysts say this shift could pave the way for more constructive US-India trade discussions, particularly as tensions over tariffs and sanctions ease.

#Business News #Global Updates