Key points
- Reliance Industries is at the centre of the controversial oil trade
- Its Jamnagar refinery has pivoted dramatically since the Ukraine war began
- Russian crude now accounts for 50pc of its imports compared to just 3pc in 2021
ISLAMABAD: India’s huge imports of Russian crude oil have come under renewed scrutiny as critics argue that New Delhi’s energy trade is cushioning Moscow’s war effort in Ukraine, while Indian refiners reap massive profits.
The United States has responded by slapping an additional 25 per cent tariff on India, with former President Donald Trump accusing New Delhi of fueling Russia’s aggression. “India was Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE – ALL THINGS NOT GOOD!” Trump wrote on his Truth Social account.
Reliance Industries Limited
At the centre of this trade is Reliance Industries Limited (RIL), owned by Asia’s richest man, Mukesh Ambani. Once a marginal buyer of Russian oil, RIL’s Jamnagar refinery has pivoted dramatically since the Ukraine war began, with Russian crude now accounting for nearly half of its imports compared to just 3 per cent in 2021, according to Al Jazeera.
$8.7 billion
According to the Centre for Research on Energy and Clean Air (CREA), RIL imported 18.3 million tonnes of Russian oil in the first seven months of 2025 alone, worth $8.7 billion. The surge is approximately 64 per cent compared with last year.
Much of that crude has been refined and re-exported to countries sanctioning Russia, including the United States and European Union.
CREA data shows that from February 2023 to July 2025, Jamnagar exported refined products worth nearly $86 billion, with an estimated $36 billion going to sanctioning nations.
US imports
The United States has emerged as one of the top buyers, importing $1.4 billion worth of oil products from the refinery this year—a 14 per cent increase from 2024.
The arrangement highlights a loophole in Western sanctions. While Washington and Brussels have sought to restrict Russia’s oil revenues through price caps, weak enforcement and the rise of a “shadow fleet” of tankers have allowed Moscow to maintain its exports. India, in turn, has capitalised on the discounted barrels, easing pressure on its current account deficit and keeping domestic fuel prices stable.
Convenient
“Even if most of the profits went to Reliance, the Indian government has found it convenient to continue this trade with Russia, both because the cheaper oil imports helped with India’s current account deficit and also helped send a message of non-alignment,” Rachel Ziemba, a senior fellow at the Centre for a New American Security, told Al Jazeera.
Other refiners, such as Nayara Energy—part-owned by Russia’s Rosneft—have also leaned heavily on Russian supplies, with two-thirds of its crude imports this year sourced from Moscow.
