India's Reliance Says It Is Not Expecting Any Russian Crude Oil Deliveries in January

India’s Reliance Industries Ltd. said on January 2 that it is not currently expecting any guaranteed shipments of Russian crude oil for delivery in January 2026 according to Bloomberg. The company previously halted Russian oil imports at its export-oriented refinery segment following U.S. sanctions against Russian energy firms Rosneft and Lukoil as reported by Business Standard.

At least three tankers carrying Russian crude oil are en route to Reliance’s Jamnagar refinery, signaling a resumption of purchases for domestic operations according to Ukraine-based media. According to analytics firm Kpler, these vessels are loaded with nearly 2.2 million barrels of Urals-grade crude and are expected to arrive early in the month as Business Standard reports.

Reliance, controlled by billionaire Mukesh Ambani, was the world’s largest buyer of Russian crude during most of 2024 and 2025 according to Reuters. However, U.S. sanctions have forced the company to seek alternatives, including non-sanctioned Russian suppliers as noted by Economic Times.

Why the Move Happened

Reliance had stopped using Russian oil at its export-focused refinery after the U.S. imposed sanctions on Rosneft and Lukoil as reported by GlobeNewswire. This decision was part of broader industry adjustments to comply with U.S. and European sanctions targeting Russian energy exports as Astute Analytica notes.

India has faced increasing pressure from Washington over its continued imports of Russian oil. In October 2025, the U.S. doubled import tariffs on Indian goods to 50% in response to India’s heavy Russian oil purchases according to PR Newswire. As a result, Indian refiners cut back on Russian oil imports, with volumes dropping to a three-year low in December 2025 as Business Standard reports.

Despite this, Reliance has resumed purchases from non-sanctioned Russian producers, drawn by steep discounts and supply uncertainties as Business Standard reports.

How Markets Responded

India has become a critical outlet for Russian oil since the 2022 war in Ukraine. Russian crude accounted for over 40% of Reliance’s imports from January through November 2025 as Business Standard reports.

In response to U.S. scrutiny, the Indian government has asked oil refiners to provide weekly data on their Russian and U.S. oil purchases as Business Standard reports. This information will help New Delhi demonstrate transparency in its energy trade and support ongoing negotiations for a trade deal with Washington according to Economic Times.

The move has also prompted Indian state-run refiners, including Indian Oil Corp. and Bharat Petroleum Corp., to source Russian oil from non-sanctioned suppliers .

What Analysts Are Watching

India’s government aims to reduce its Russian oil imports to below 1 million barrels per day as it seeks to reach a trade agreement with the U.S. . The country’s strategic shift in energy sourcing could have broader implications for global oil markets, particularly if it aligns more closely with Western sanctions .

Meanwhile, India has taken steps to diversify its energy infrastructure. The recently passed Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act aims to modernize the country’s nuclear energy sector and attract private and foreign investment .

In a separate move, the Indian government is also expanding access to coal auctions for foreign buyers. Coal India has opened its Single Window Mode Agnostic (SWMA) e-auctions to buyers from Bangladesh, Bhutan, and Nepal, starting January 2026 . This move is intended to enhance transparency and global competition in coal trading .