After halting imports to its export-oriented refinery in late 2025 to comply with EU and US restrictions, Reliance is returning to the market with a bifurcated refining strategy. The company is now sourcing barrels exclusively from non-sanctioned Russian entities and third-party traders.
The “Two-Refinery” Solution
To balance its massive export business with India’s need for affordable fuel, Reliance has divided its Jamnagar operations:
- Domestic Tariff Area (DTA) Refinery: This 660,000-barrel-per-day unit is the primary destination for the resumed Russian flows. Fuel produced here is intended for the Indian domestic market, which is not subject to the same “no-Russian-origin” certificates required by the EU.
- SEZ (Export-Oriented) Refinery: Reliance continues to strictly exclude Russian crude from this unit. This ensures that the petrol and diesel exported to Europe and the US comply with the January 2026 “60-day clean” rules.
Reliance’s Russian Oil Timeline (2025–2026)
| Date | Event | Status |
| Oct 22, 2025 | US sanctions Rosneft and Lukoil. | Pause Initiated |
| Nov 20, 2025 | RIL stops Russian oil for export-oriented units. | Compliance Shift |
| Dec 2025 | Imports drop to multi-year lows (~270k bpd). | Supply Diversification |
| Jan 6, 2026 | RIL refutes reports of January shipments. | No-Import Zone |
| Jan 21, 2026 | Reports of Feb/March resumption. | Market Return |
Navigating Geopolitical Pressure
The resumption comes at a delicate time. In early January 2026, U.S. President Donald Trump reportedly warned of “500% tariffs” on countries bypassing Russian energy sanctions.
- The “Make Me Happy” Cut: Reliance’s total lack of Russian imports in early January was characterized by some as a strategic move to de-escalate trade tensions with the new U.S. administration.
- The Non-Sanctioned Loophole: By sourcing from “RusExport” and other smaller, non-sanctioned suppliers using Aframax tankers, Reliance aims to maintain its “sanctions-compliant” status while still benefiting from the roughly $8–$12 discount per barrel compared to Brent.
Conclusion: Pragmatic Energy Security
Reliance’s return to the Russian market in February 2026 underscores India’s pragmatic stance on energy security. As the world’s third-largest oil importer, India cannot easily replace the 1.2 to 1.7 million barrels per day it has grown accustomed to receiving from Russia. For Reliance, the goal is to prove it can “thread the needle”—saving billions on input costs for the domestic market while remaining a trusted, clean supplier to the Western world.
