Reliance Shifts from Russian to Middle East Crude Oil Amid US Pressure

India’s Reliance Industries Ltd has ramped up its purchase of Middle Eastern crude oil, signaling a potential shift away from its long-standing reliance on Russian supplies. The decision comes as Western nations, led by the US, intensify pressure on India to reduce imports of Russian crude amid the ongoing Ukraine conflict, marking a pivotal moment for one of the world’s largest refiners.

Traders familiar with the deals, speaking anonymously due to confidentiality, revealed that Reliance secured at least 2.5 million barrels last week, including Iraq’s Basrah Medium, Al-Shaheen, and Qatar Land grades. This buying spree marks a noticeable uptick from the company’s usual procurement patterns, which already included a steady diet of West Asian oil. Sources indicate Reliance is also actively scouting for additional supplies from the region, seeking grades similar to Russian crude to maintain its operational efficiency.

The shift aligns with heightened diplomatic efforts from the US, where President Donald Trump recently claimed India had agreed to halt Russian oil imports—a statement New Delhi has neither confirmed nor denied. Local refiners, including Reliance, have hinted at scaling back purchases from the Opec+ producer, though a complete cessation seems unlikely. Adding to the pressure, the European Union’s upcoming ban on Russian crude-derived fuels, effective January 21, threatens Reliance’s export markets, prompting the company to diversify its supply chain.

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Reliance, a dominant player in India’s energy landscape, has historically leaned on Russian crude as a cost-effective mainstay for its refining operations. However, with the US urging allies to isolate Moscow economically and the EU tightening sanctions, the company appears to be adapting to a new geopolitical reality. Official guidelines have flagged India as a focal point for scrutiny, urging counterparties to exercise caution in dealings with the nation’s refiners.

Despite the strategic pivot, Reliance remained silent on the matter, with no response to inquiries amid a local holiday. Industry analysts suggest this move could reshape India’s energy imports, potentially driving up costs as West Asian crude often carries a premium over Russian grades. The development has sparked speculation about broader implications for global oil markets, with stakeholders watching closely as Reliance navigates this high-stakes transition. Meanwhile, the lack of official comment from New Delhi keeps the market guessing about the government’s stance on this evolving energy saga.

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