Reliance pauses Russian crude buys as state refiners lift imports on deep discounts

Reliance Industries Ltd, long regarded as India’s largest buyer of Russian crude, has halted imports from Russia so far this month, even as state-owned refiners increase purchases to take advantage of sharply discounted barrels.

Industry sources and ship-tracking data show that Reliance, which was among the world’s biggest buyers of seaborne Russian oil in 2025, has not lifted any Russian crude in the first three weeks of January. Several other private and joint-venture refiners, including HPCL-Mittal Energy Ltd and Mangalore Refinery and Petrochemicals Ltd, have also stayed out of the market during the period.

In contrast, state-run refiners have stepped up buying as discounts on Russian oil widened to about $7 a barrel — nearly three times the level seen in mid-2025. Indian Oil Corporation (IOC) emerged as the largest buyer, importing an average of 470,000 barrels per day (bpd) in January, its highest level on record, according to data from maritime intelligence firm Kpler. This compares with 427,000 bpd in December.

Bharat Petroleum Corporation Ltd (BPCL) also raised imports to around 164,000 bpd from 143,000 bpd a month earlier. Rosneft-backed Nayara Energy, which has faced supply constraints following European Union sanctions, continued to rely heavily on Russian crude, lifting about 469,000 bpd during the month.

Overall, India’s imports of Russian oil eased slightly to about 1.1 million bpd in the first three weeks of January, down from 1.2 million bpd in December and well below the peak of 1.84 million bpd recorded in November. The decline reflects the impact of US sanctions on Rosneft and Lukoil, Russia’s two largest oil exporters, which came into force in late November.

Analysts expect purchases to stabilise in the coming months. Kpler analyst Sumit Ritolia said India’s Russian crude imports are likely to average around 1.2 million bpd in January and between 1.3 million and 1.5 million bpd over the first quarter of 2026. “Nayara, BPCL and IOC bought fresh cargoes in January, while others such as Reliance, MRPL and HMEL have stayed on the sidelines so far,” he said.

Indian refiners are increasingly sourcing Russian oil through newer, non-sanctioned intermediaries rather than direct liftings from major producers, as they seek to reduce compliance risks. While direct supplies linked to Rosneft and Lukoil continue, they are becoming more concentrated among buyers such as Nayara, which has closer Russian linkages and a higher risk tolerance.

Kpler data show that about 60 per cent of India’s Russian crude imports in January went to IOC and BPCL, with the remainder largely absorbed by Nayara. Rosneft supplied roughly 130,000 bpd to India during the month, while Lukoil shipped around 103,000 bpd. Unsanctioned producers and trading entities, including Surgutneftegas and RusExport, accounted for the bulk of shipments.

Reliance has previously confirmed that it did not receive any Russian cargoes in January, after halving purchases in December from November levels. HMEL’s absence from the market is widely attributed to concerns over potential repercussions for the global operations of the Mittal Group, after averaging more than 150,000 bpd of Russian imports last year.

Despite its heavier exposure, Nayara appears to have maintained stable operations. “The refinery has continued running at near full capacity, indicating steady crude sourcing despite constraints,” Ritolia said. On the products side, the company has been moving significant volumes of fuel into the domestic market, while also shipping some cargoes overseas.

The shifting pattern underscores how India’s refiners are adapting procurement strategies amid tighter sanctions, balancing deep discounts against regulatory and reputational risks.

With PTI inputs