Reliance Halts Russian Crude Processing At Jamnagar SEZ Refinery, Moves Early To Comply With Tightening EU-US Sanctions On Russian Oil Products

Mumbai: Reliance Industries Ltd has stopped using Russian crude at its export-focused Special Economic Zone (SEZ) refinery in Jamnagar, Gujarat, as part of its shift to meet European Union sanctions targeting fuels derived from Russian oil. Reliance, India’s largest buyer of Russian crude since the start of the Ukraine war, operates the world’s biggest single-site refinery complex at Jamnagar, consisting of a SEZ unit that exports fuel globally and an older Domestic Tariff Area (DTA) refinery serving the Indian market.

To ensure full compliance with new EU rules that restrict fuel imports made from Russian crude starting January 2026, Reliance said it ceased Russian crude intake at the SEZ refinery effective November 20. The company noted that while the refinery continues processing existing inventories, all fuel exported from December 1 onward will be produced exclusively from non-Russian crude. Reliance said the transition had been completed well ahead of schedule.

Now that the transition’s done, any Russian crude arriving after November 20 will go straight to Reliance’s Domestic Tariff Area refinery. That part of the business isn’t covered by the SEZ-specific rules, so those operations will keep running without any hiccups. Reliance’s teams say all the rerouted supply should get processed smoothly.

The decision comes amid tightening sanctions by the US, EU and UK—including recent US measures targeting Rosneft and Lukoil. Reliance, which has major business exposure in the US, has been gradually reducing Russian crude purchases since these sanctions were announced. Although it had signed a long-term agreement to buy up to 500,000 barrels per day from Rosneft, the company has been “recalibrating” its sourcing strategy, shifting purchases to other regions.

Reliance confirmed it will honour all pre-committed shipments of Russian crude as of October 22, 2025, with the final SEZ-bound cargo loaded on November 12. Any Russian crude arriving after November 20 will be diverted to the DTA refinery, which is not subject to SEZ-specific restrictions.

Russia currently supplies nearly one-third of India’s crude imports, with private refiners like Reliance and Nayara Energy purchasing the bulk of shipments from Rosneft and Lukoil.

Meanwhile, Reliance’s stock traded a bit lower on the NSE at Rs 1,545.10 around 11:27 AM—just below yesterday’s close of Rs 1,549.10. The day’s trading saw the stock move between Rs 1,557.80 at the high and Rs 1,540.10 at the low.