Reliance Industries Ltd., India’s largest private refiner, announced on Tuesday that it anticipates zero shipments of Russian crude oil for January and confirmed no receipt of such cargoes over the preceding three weeks. The energy conglomerate publicly refuted a Bloomberg report, based on Kpler data, which claimed three oil tankers carrying Russian crude were en route to Reliance’s Jamnagar refining complex.
This development signals a substantial shift in global energy trade dynamics that emerged following Russia’s invasion of Ukraine in 2022. India had capitalized on discounted Russian seaborne crude, becoming Moscow’s largest petroleum customer and triggering diplomatic friction with Western nations. These nations implemented stringent sanctions targeting Russia’s energy sector, arguing that oil revenues directly finance Moscow’s military operations.
With Reliance’s withdrawal from Russian crude procurement, India’s imports from Russia are projected to decline further this month. China now stands as the sole significant market for Russian oil exports. This recalibration occurs as New Delhi pursues enhanced trade relations with Washington, with Indian authorities recently mandating weekly disclosures from refiners regarding their Russian and U.S. oil purchases.
The impact of strengthened U.S. and European Union sanctions is already evident in trade data. December witnessed Russian oil flows to India plummet to approximately 1.2 million barrels per day—the lowest level in three years according to industry sources and analytics firm Kpler. This represents a dramatic 40% contraction from the June peak of nearly 2 million barrels per day, underscoring the effectiveness of international pressure on energy trade patterns.