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India’s imports of Russian crude oil have dramatically increased, with Reliance Industries Limited (RIL), led by Asia’s richest person Mukesh Ambani, playing a central role. This shift has triggered international attention, including punitive tariffs from the United States, and raises complex questions about geopolitics, economics, and energy security.
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Before the Ukraine war, Russian crude made up only about 3% of RIL’s total crude imports at its Jamnagar refinery. By 2025, this figure has surged to approximately 50%, according to the Centre for Research on Energy and Clean Air (CREA). In the first seven months of 2025 alone, RIL imported 18.3 million tonnes of Russian crude, marking a 64% year-on-year increase and amounting to $8.7 billion in value.This shift coincides with the introduction of a price cap on Russian oil products starting February 5, 2023. The cap aimed to reduce Russia’s revenue while ensuring global energy supply. However, due to enforcement challenges and the operation of a “shadow fleet” of vessels circumventing controls, many buyers, including RIL, have continued purchasing Russian crude at prices higher than the cap.
CREA’s tracking reveals that from February 2023 to mid-2025, RIL’s Jamnagar refinery exported refined products worth nearly $86 billion worldwide. Remarkably, around 42% ($36 billion) of these exports have gone to countries that sanction Russia, including the European Union and the United States. The U.S. is the largest single-country importer by volume, bringing in 8.4 million tonnes of products and spending $1.4 billion in 2025 alone—a 14% increase from the previous year.These imports mainly consist of blending components, petrol, and fuel oils. Other major importers include the United Arab Emirates, Australia, and Singapore.
Besides Reliance, Nayara Energy—majority-owned by Russian firms such as Rosneft—is another significant importer of Russian crude. Its Vadinar refinery sources about 66% of its crude from Russia in 2025, although in volume terms, Nayara’s imports are roughly a third of Reliance’s.India’s continued engagement with Russian oil is tied to its long-standing strategic partnership with Moscow, dating back to the Cold War, and the desire to maintain non-alignment in global conflicts. This approach has helped India manage its current account deficit by leveraging cheaper oil imports while signaling strategic independence.
The United States, under former President Donald Trump, imposed an additional 25% tariff on Indian imports from Russia, accusing India of fueling Russia’s war in Ukraine. Trump highlighted India as a major buyer of Russian energy alongside China, sparking diplomatic tensions.However, analysts argue that targeting India alone is unfair, pointing out that China remains the largest purchaser of Russian oil. Critics describe the tariffs as a “sham,” influenced by broader U.S. trade frustrations rather than purely geopolitical concerns.
The European Union’s upcoming ban on imports of refined petroleum products processed from Russian crude, effective January 2026, is expected to significantly impact Reliance’s export strategy. With over half of RIL’s jet fuel exports going to the EU, compliance will require adjustments, potentially reshaping trade flows and refinery operations.Despite these challenges, Reliance has secured a 10-year contract with Rosneft signed in December, underscoring the complex interplay between business interests and international sanctions.
India’s surge in Russian oil imports, led by Mukesh Ambani’s Reliance Industries, reflects a multifaceted reality involving strategic partnerships, economic imperatives, and global geopolitical tensions. While the U.S. has responded with tariffs, the broader global landscape remains complex, with evolving sanctions and market dynamics set to influence India’s energy trade for years to come.
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