Billionaire Ambani’s Reliance Halts Russian Oil for Exports, Easing US-India Trade Tensions

MUMBAI—  India’s largest conglomerate, Reliance Industries, owned by billionaire Mukesh Ambani, has implemented a crucial pivot in its crude sourcing strategy by stopping the import of Russian oil for its export-dedicated refining unit at Jamnagar, Gujarat.

The move marks a significant compliance victory for Western sanctions regimes and signals a potential thaw in the frosty trade relationship between New Delhi and Washington.

Reliance, which accounts for around 50% of Russian oil flows into India, announced the transition was completed ahead of schedule to ensure full compliance with two key international restrictions:

EU Third-Country Ban: The European Union’s ban on fuel imports made from Russian oil through third countries, which takes full effect on January 21, 2026.

US Sanctions: US sanctions on major Russian oil producers Rosneft and Lukoil, which came into full effect on Friday, November 21.

“This transition has been completed ahead of schedule to ensure full compliance with product-import restrictions coming into force on 21 January 2026,” Reliance stated, confirming that the crude previously designated for the export-only Special Economic Zone (SEZ) refinery will now be sourced from non-Russian origins. Remaining Russian cargoes arriving after November 20 will be diverted to the company’s domestic-focused refining unit.

The White House immediately welcomed the shift, stating to the Washington Post: “We welcome this shift and look forward to advancing meaningful progress on US-India trade talks.”

India’s massive purchase of discounted Russian oil, which surged from barely 2.5% of imports before the 2022 invasion to around 35.8% in 2024-25, has been a major sticking point with the US. President Donald Trump imposed a steep 50% tariff on Indian goods in August, explicitly including a 25% penalty for Russian oil and arms purchases.

With India’s biggest importer now making decisive cuts, analysts are demanding Washington reciprocate. Ajay Srivastava of the Global Trade and Research Initiative (GTRI) said Washington must “immediately scrap the additional 25% tariff on Indian goods,” warning that maintaining the tariff “undermines goodwill and risks slowing already delicate trade negotiations.”

Reports indicate mounting global pressure is yielding results, with Indian state-controlled refineries also skipping Russian crude imports for December contracts and Reliance increasing monthly imports from Saudi Arabia by 87% and Iraq by 31% in October.