Refining the Rules—Reliance Blends Russian Crude Into US Demand With Precision

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India’s largest private-sector conglomerate, Reliance Industries Ltd., is walking a diplomatic and commercial tightrope—importing Russian crude oil while exporting refined fuels to the United States, according to a March 2025 report by the Centre for Research on Energy and Clean Air (CREA). The strategy underscores Reliance’s ability to operate within global sanctions frameworks while maximizing refinery economics.

The Numbers Behind the Strategy

From January 2024 to January 2025, Reliance exported €724 million (₹6,850 crore) worth of fuel to the U.S. that was refined from Russian crude.
The U.S. imported €2 billion worth of fuels from Reliance’s Jamnagar refinery, with over a third estimated to be derived from Russian oil.
Despite Western sanctions on Russia, there are no restrictions on importing Russian crude or exporting refined products like diesel from it.

Geopolitical and Commercial Implications

Reliance’s approach complies with G7 price cap rules, which allow purchases of Russian crude below $60 per barrel, and exports of refined products without direct sanctions.
The company’s 10-year supply deal with Rosneft, signed in late 2024, secures up to 500,000 barrels per day, making Reliance one of Russia’s largest crude buyers.
This deal could squeeze out Middle Eastern grades from Reliance’s refining slate, reshaping regional oil dynamics.

Industry Insight

“Reliance’s strategy reflects a pragmatic balance—leveraging discounted Russian crude while maintaining strong export ties with the West,” said an energy analyst at Kpler.

Sources: The Hindu, Kpler, CNBC TV18, Deccan Herald, The Hindu BusinessLine