Reliance to Purchase Sanctions-Compliant Russian Oil in Early 2022

• Reliance previously imported 500,000 barrels per day of Russian crude under a long-term agreement with Rosneft for its 1.4 million bpd Jamnagar refinery complex
• EU sanctions effective January 21 prohibit fuel imports from refineries that processed Russian oil within 60 days prior to shipment, prompting Reliance to segregate operations between its 660,000 bpd domestic and 704,000 bpd export-oriented refineries
• India's overall Russian oil imports are expected to remain subdued through March as refiners boost Middle Eastern purchases to mitigate sudden sanctions risks

Summary: Reliance to Purchase Sanctions-Compliant Russian Oil in Early 2022

Key Development: India's Reliance Industries, operator of the world's largest refining complex, will resume purchasing sanctions-compliant Russian oil in February and March 2026 after a one-month pause in January. The company last received Russian crude in December following a temporary waiver extension past the November 21 deadline.

Critical Details

• Reliance previously imported Russian crude under a long-term agreement with sanctioned producer Rosneft for 500,000 barrels per day (bpd)
• The 1.4 million bpd Jamnagar refinery complex in Gujarat includes a 660,000 bpd India-focused plant and a 704,000 bpd export-oriented facility
• Russian oil received after November 20 will be processed at the India-focused plant, allowing continued EU fuel sales from the export refinery

Market Implications

Despite Reliance's return to Russian purchases, India's overall Russian oil imports are expected to remain subdued through March. Indian refiners are pivoting away from Russia, increasing Middle Eastern crude purchases to adjust import strategies. India became the top buyer of discounted Russian seaborne crude following the 2022 conflict outbreak.

Regulatory Context

New EU sanctions effective January 21 prohibit fuel imports from refineries that processed Russian oil within 60 days prior to the bill-of-lading date. Reliance's dual-refinery strategy allows compliance while maintaining Russian purchases for domestic consumption.

Industry Impact

Indian refiners face uncertainty from sudden sanctions, prompting proactive diversification to national oil companies in other regions to avoid spot market disruptions. The long-term continuation of Russian oil purchases beyond March remains unclear.