Reliance, a giant company processing nearly 600,000 barrels of oil daily, has begun steering away from Russian raw materials as new EU sanctions target diesel derived from Russian oil.

Source: Bloomberg, drawing on insights from traders and Kpler data.

Details: Reliance Industries Ltd., helmed by billionaire Mukesh Ambani, made an unusual acquisition of Murban crude oil from Abu Dhabi – swiftly following the rollout of a fresh EU sanctions package against Russian oil diesel. Though the company typically opts for cheaper Russian and Middle Eastern grades, it now embraces this premium choice.

Kpler reports that almost half of Reliance’s 2025 imports stem from Russian oil. Meanwhile, the company exports around 20% of its products to Europe – predominantly as diesel fuel.

The latest EU sanctions, effective from 21 January 2026, ban the import of fuel processed from Russian oil – even if refined in non-sanctioning countries. This jeopardises Reliance’s lucrative model, which thrived on Russian discounts since 2022.

Reliance officials offered no comment on the matter. Bloomberg highlights that the company is already exploring alternatives in Middle Eastern nations. Yet, a pressing question lingers: can it replace approximately 600,000 barrels of daily Russian imports—and at what cost?

Background:

The second tanker altered plans to load fuel at Nayara Energy’s plant in India following EU sanctions.The oil tanker Talara, chartered by major energy firm BP, departed the sanctioned Indian refinery Nayara Energy’s Vadinar port without loading diesel fuel.On 18 July, the Council of the EU adopted the 18th package of economic and individual restrictive measures targeting Russia’s energy, banking and military sectors, as well as its trade with the EU.Part of the new EU sanctions package against Russia, aimed at restricting the flow of fuel made from Russian crude oil, will only come into force in January 2026.

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