Reliance Industries Resumes Modest Russian Urals Crude Purchases Amid US Scrutiny

Reliance Industries Ltd. (RIL) has recommenced the procurement of Russian Urals crude oil, marking a measured return to this supply channel following a temporary cessation prompted by heightened oversight from the United States administration. As of January 2, 2026, at least three tankers carrying an estimated 2.2 million barrels of this crude are en route to RIL's Jamnagar complex on India's western coast, with deliveries anticipated in the initial days of January 2026.

This resumption follows a significant pause initiated after the US blacklisted major Russian suppliers, Rosneft PJSC and Lukoil PJSC, in October 2025. The temporary halt caused Reliance's intake of Russian oil to contract sharply, with December 2025 deliveries dropping to approximately 270,000 barrels per day, contributing to overall Russian oil imports to India sinking to a three-year low for that month. Prior to the sanctions, Rosneft had been a cornerstone supplier for RIL under a term agreement potentially covering up to 500,000 barrels per day.

The current cargoes are reportedly being sourced from non-sanctioned entities, including traders such as Alghaf Marine DMCC, Redwood Global Supply FZ LLC, RusExport, and Ethos Energy. This indicates a strategic pivot in trade channels designed to maintain compliance while securing feedstock at discounted rates. This maneuver by the conglomerate, controlled by billionaire Mukesh Ambani, underscores India's persistent prioritization of energy cost management, a characteristic of its sourcing strategy since Western nations began restricting Russian energy flows following the conflict in Ukraine.

The crude from these recent shipments is designated for domestic consumption within India, a potential adjustment aimed at mitigating specific regulatory risks associated with re-exporting materials sourced under current geopolitical constraints. Analysts suggest that Russian crude supplies to India will gradually recover in early 2026, routed through these more complex intermediary trade channels to circumvent the threat of US secondary sanctions.

While Indian refiners, including RIL, have historically favored the cost advantages of discounted Russian crude, US sanctions, which included a 25 percent reciprocal tariff on Indian purchases announced in August 2025, have necessitated sector recalibration. Other major refiners, such as Indian Oil Corp., are planning to procure 24 million barrels of crude from the Americas in the first quarter of the following year to replace lost Russian volumes, with Indian Oil publicly vowing full compliance with international sanctions. The broader context shows India, a leading buyer of Russian crude in 2024 and 2025, actively pivoting toward alternative suppliers like the United States, which saw an 83.3 percent surge in shipments during January-October 2025, and the UAE.

The resumption by Reliance, even on a modest scale, signals the Indian refining sector's determination to sustain access to competitively priced feedstock, even if it requires navigating intricate geopolitical restrictions. The core challenge remains how RIL and the nation will manage these restrictions to ensure the sustained flow of vital, discounted energy resources.