EU clampdown forces India's Reliance to rethink Russia oil strategy

India’s Reliance Industries Ltd. is drawing increased attention following the European Union’s announcement of new restrictions targeting diesel produced from Russian crude, as the bloc intensifies efforts to curb Moscow’s oil revenue.

According to traders, cited by Bloomberg, Reliance recently made a rare purchase of Abu Dhabi’s Murban crude late last week, acquiring the cargo shortly after the EU unveiled its latest sanctions package on Friday. The company is not known for regularly purchasing the UAE grade, which is priced at a premium compared to its usual preferences — Russian Urals and heavier Middle Eastern grades.

Sources familiar with Reliance’s import strategy, who spoke on condition of anonymity due to the sensitivity of the matter, revealed that the company has started looking to diversify its crude sourcing away from Russia. Russia has been Reliance’s largest oil supplier so far in 2025.

A spokesperson for Reliance was not immediately available for comment when contacted during regular business hours.

Owned by billionaire Mukesh Ambani, Reliance is one of India’s largest private refiners and has been among the main beneficiaries of the shift in global oil trade triggered by Russia’s invasion of Ukraine in 2022. With Europe turning away from Russian crude, Indian refiners capitalised on steep discounts to boost imports and ramp up fuel production, especially diesel, which they then resold to Western markets.

Data from commodity analytics firm Kpler shows that Russian oil has accounted for nearly 50% of Reliance’s crude imports this year. At the same time, approximately 20% of the company’s refined product exports were shipped to European buyers.

However, the practice of processing Russian crude into diesel and reselling it to Europe has now come under the EU’s spotlight. Under the latest sanctions package, a ban on such refined fuels is scheduled to come into force on January 21, 2026.

While it remains uncertain whether Reliance will make a significant shift away from Russian crude, traders have observed early signs that the company is exploring alternatives in the Middle East. Nevertheless, it remains unclear how Reliance will secure the roughly 600,000 barrels per day it typically sources from Russia, or how much more it may cost to replace that volume.

India has criticised the EU’s new measures, with Foreign Secretary Vikram Misri stating on July 22 that secondary sanctions targeting the purchase of Russian oil and gas must be approached with “balance.”

By Tamilla Hasanova