Indian oil refiners have resumed purchases of Russian crude, with shipments once again heading to the country’s west coast, according to reporting by Bloomberg on 2 January. At least three tankers carrying Russian seaborne oil have listed the Reliance Industries Ltd. refinery as their destination, signalling a renewed flow of supplies after a temporary adjustment in procurement strategy.
The tankers are loaded with a combined 2.2 million barrels of Urals crude and are expected to arrive at Reliance’s Jamnagar refinery in early January 2026. Shipping data indicate that the cargoes were supplied by traders including Alghaf Marine DMCC, Redwood Global Supply FZ LLC, RusExport and Ethos Energy, with the first two companies under UK sanctions. A Reliance spokesperson has denied that the refinery purchased the specific cargoes identified, underscoring the sensitivity surrounding Russian oil transactions.
Reliance and India’s balancing act
Reliance Industries, controlled by billionaire Mukesh Ambani, was the world’s largest buyer of Russian crude in 2024–2025, with Russian supplies accounting for more than 40 percent of the Jamnagar refinery’s imports between January and November 2025, according to data from analytics firm Kpler. India’s extensive trade in Russian oil has drawn sharp criticism from the United States, including from President Donald Trump and senior members of his administration.
Following Washington’s decision in September 2025 to blacklist Russian energy giants Rosneft and Lukoil, Reliance announced in November that it would stop using Russian oil in the export-oriented segment of its refinery. Since then, the company has shifted to sourcing crude from non-sanctioned Russian producers and using it solely for domestic fuel production, an approach designed to limit exposure to US sanctions.
Wider trend among Indian refiners
Reliance is not the only Indian refiner continuing to buy Russian oil. State-owned companies such as Indian Oil Corp. and Bharat Petroleum Corp. have also been purchasing cargoes transported by vessels not subject to Western sanctions. Indian refiners remain attracted by significant discounts on Russian crude, even as refining margins narrow and uncertainty persists over trade relations with Washington.
At the same time, diversification efforts are under way. On 31 December 2025, Indian Oil Corp. reportedly purchased crude from Colombia for the first time under an optional contract with state-owned producer Ecopetrol, highlighting attempts to reduce reliance on Russian supplies as sanctions and restrictions on Russia’s “shadow fleet” complicate logistics.
Strategic implications for global oil markets
Despite Western sanctions, India, China and Turkey remain among the largest buyers of Russian oil, although the trade is becoming increasingly complex due to enforcement measures and financial risks. All three countries are seeking to balance economic benefits against the threat of secondary sanctions from the US, the UK and the EU.
Looking ahead to 2026, analysts expect a gradual reduction in Russian oil imports by these countries as costs rise and logistical challenges intensify. While none is likely to abandon Russian crude entirely in the near term, a simultaneous decline in purchases by India, China and Turkey would pose a serious risk to Russia’s oil sector, which depends heavily on these markets to offset the loss of customers in the West.
