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The final supertankers carrying Russian oil to India departed the Black Sea approximately four weeks ago, racing against the deadline before U.S. sanctions targeting companies collaborating with Russia’s two largest oil giants—Rosneft and Lukoil—took effect on November 21.
This last-minute oil stockpiling marks the end of India’s three-year surge in Russian oil purchases. Since the Russia-Ukraine conflict began in 2022, Indian companies capitalized on discounted oil prices due to reduced European demand amid EU restrictions.
In this context, Reliance Industries, India’s largest private refinery, halted Russian crude imports at its Jamnagar complex starting November 20. This abrupt shift underscores Indian refiners’ prioritization of compliance with the latest U.S. sanctions against Rosneft and Lukoil.
Reliance is the hardest hit. Over the past two years, it was India’s top Russian crude buyer, holding a long-term deal with Rosneft for nearly 500,000 barrels/day. Halting Russian oil purchases safeguards its global banking access and maintains exports to Europe, which accounts for 28% of Reliance’s output.
According to the company, all shipments from December 1 onward will exclusively use non-Russian crude. The transition concluded earlier than anticipated, partly due to the U.S. tax concession deadline of November 21, with no major Indian firm willing to risk penalties. The final Russian cargo was loaded on November 12; any post-November 20 arrivals will be diverted to the Domestic Tariff Area and excluded from exports.
This strategic pivot was premeditated. Days before halting Russian imports, Reliance purchased 1 million barrels of Kuwaiti crude when Kuwait Petroleum unexpectedly released volumes into the spot market. The company had also pre-stockpiled Middle Eastern crude, anticipating escalated U.S. sanctions.
For India’s largest refinery, the calculus is clear: protect global banking access, sustain European exports, and avoid legal risks tied to discounted Russian oil. While Russian oil will remain in circulation, it will no longer flow through Reliance’s systems.
Source: Oilprice
