Reliance to Rework Refinery Plan Amid Russia Sanctions

Reliance Industries Ltd (RIL) is preparing to recalibrate its refinery operations following the latest sanctions imposed by the United States, the United Kingdom, and the European Union on Russian oil. The company said it will fully comply with global regulations while ensuring India’s energy needs remain secure.

The development comes after Washington announced sweeping sanctions on Russia’s largest oil producers — Rosneft and Lukoil — in an effort to tighten pressure on Moscow. The move has direct implications for Reliance, which sources nearly half a million barrels per day of crude under long-term deals with Rosneft.

RIL, which operates the world’s biggest refinery complex in Jamnagar, Gujarat, said it is currently assessing the new compliance rules and refining strategies. “We remain committed to our spotless record of sanctions compliance and will adapt operations accordingly,” the company stated.

Russia currently accounts for 35–40% of India’s total crude imports, with Reliance handling almost half of those volumes. The new sanctions are expected to raise India’s annual oil import bill by an estimated $2.7 billion, forcing refiners to explore new supply routes.

In anticipation of the disruption, RIL has already begun securing additional crude from West Asian suppliers such as Saudi Arabia, Iraq, and Qatar. Industry sources indicate that the company is diversifying its crude basket to balance cost efficiency with compliance.

While public sector refiners rely mostly on spot purchases and are less exposed to the sanctions, private players like Reliance face a tougher adjustment due to their long-term Russian contracts. Yet, RIL’s scale and flexibility are seen as key strengths in navigating the sudden shift.

As Reliance reconfigures its sourcing strategy, India’s refining landscape stands at a crossroads — balancing global compliance pressures with domestic energy imperatives.