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“RIL Halts Russian Crude Use at Gujarat Refinery”

Reliance Industries Limited (RIL) has announced that it has ceased the utilization of Russian crude oil at its export-focused refinery in Jamnagar, Gujarat, in adherence to the sanctions imposed by the European Union. RIL, a major purchaser of Russian oil in India, refines this crude oil into various fuels like petrol and diesel at its extensive oil refining facility in Jamnagar, comprising two refineries – one for export to markets such as the European Union and the US, and another catering to the domestic market.

Given the significant impact of the European Union sanctions on Russia’s energy sector, including restrictions on the import and sale of fuels derived from Russian crude oil, Reliance has taken the step to halt the processing of Russian crude at its export-only refinery. A company spokesperson confirmed this decision, stating that the import of Russian crude oil into the SEZ refinery ceased on November 20.

The refinery, like any large industrial plant, operates on existing crude oil inventories which are currently being processed into fuel products. Following the depletion of the old inventory, all product exports from the SEZ refinery, starting December 1, will be sourced from non-Russian crude oil to comply with the upcoming product import restrictions effective from January 2026.

In response to the sanctions imposed by the US on major Russian oil exporters, Rosneft and Lukoil, Reliance had previously affirmed its commitment to adhering to all relevant restrictions and adjusting refinery operations as necessary. The company, known for operating the world’s largest single-site oil refining complex in Jamnagar, purchased a significant portion of discounted Russian crude oil imported to India for refining into fuels like petrol, diesel, and aviation turbine fuel (ATF), a considerable portion of which is exported to regions like Europe and the US.

As per the company’s statement, it is aligning with the EU guidelines on refined product imports into Europe. The SEZ crude oil import operations are segregated, and all pre-committed liftings of Russian crude oil until October 22, 2025, are being honored, with any Russian cargoes arriving after November 20 being processed at the domestic tariff area refinery.

Reliance, which holds a long-term crude oil supply agreement with Rosneft, has been reducing its Russian imports since the US sanctions. With the recalibration of imports initiated after the EU’s recent sanctions against Moscow, the company is adjusting its import requirements to different regions, as industry sources suggest.

Notably, transactions involving the sanctioned Russian firms must be concluded by November 21. Russia presently supplies nearly one-third of India’s crude imports, with a substantial portion sourced directly from Rosneft and Lukoil, primarily purchased by private refiners like Reliance Industries Ltd and Nayara Energy, along with smaller allocations to state-owned refiners.

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