India’s largest private refiner, Reliance Industries Ltd (RIL), announced it will cease purchasing crude oil from Russian firms subject to US sanctions — such as Rosneft and Lukoil — with a wind-down deadline of November 21, 2025. This strategic pivot is driven by growing risks of US secondary sanctions and the need to protect access to Western markets.
Why this decision?
- The United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Rosneft and Lukoil on October 22, 2025, mandating that transactions with these firms be wound down by November 21.
- RIL operates in global markets (including US-dollar based trade, Western finance) and thus seeks to align with sanctions to avoid being cut-off from key banking and payment systems.
- Russian crude had become a large part of India’s oil imports (and RIL’s sourcing) due to steep discounts; changing that mix requires strategic adjustments.
What exactly RIL will do
- RIL will stop purchases from sanctioned entities after November 21, 2025
- It is reducing Russian crude imports now, with data showing RIL’s Russian crude share dropped from ~56 % in September to ~43 % in October.
- RIL indicates that supply contracts evolve to reflect changing regulatory conditions and that it will maintain diversified sourcing to meet refinery needs.
Implications
For RIL
- Shift in sourcing: More crude will need to come from Middle East, US, Latin America or Africa to replace Russian volumes.
- Margins and costs may change: Russian barrels were often cheaper; alternative supplies may cost more or have different logistics.
- Continuation of exports: RIL’s refineries not only serve India but export fuel; compliance is key to keep global trade flows open.
For India’s energy landscape
- Indian refiners will face headwinds in maintaining discounted supply flows from Russia. The Indian Express
- The regulatory and geopolitical pressure is increasing: Indian importers must balance energy security, cost and sanctions risk.
- Global crude trade flows may shift: Russian crude volumes to India may drop, altering global supply-demand and potentially affecting price dynamics.
For the global sanctions regime
- India’s compliance or alignment shows the reach of US secondary sanctions, even on non-US companies.
- This may signal to other large buyers of Russian crude to pre-emptively adjust sourcing before full sanctions effect.
Challenges & Risks
- While the wind-down deadline is November 21, some shipments already en route or contracted earlier may still land — tracking actual volumes is complex.
- Finding replacement crude at comparable cost and quality poses a risk for refining margins.
- Dependence on Russian oil was significant; transition may involve infrastructure, logistics and contractual changes.
- Malalignment between Indian government policy (which has not mandated full halt) and private companies could create uncertainty. mint
Conclusion
Reliance Industries’ decision to stop buying Russian crude from sanctioned entities by November 21, 2025 marks a major pivot in India’s crude sourcing strategy. It underscores how global sanctions regimes shape regional energy flows and how major companies must adapt to preserve access to international finance and markets. For RIL and India, the coming months will test how effectively they transition to alternative supplies while managing cost, continuity and compliance.
