India gets ready for the worst

India’s Reliance Industries Ltd. is facing renewed scrutiny over its crude procurement practices following the European Union’s latest round of sanctions targeting diesel derived from Russian oil, Bloomberg reported.

In an unusual move, Reliance recently acquired a cargo of Murban crude from Abu Dhabi—a premium variety it rarely buys—shortly after the EU rolled out its latest sanctions package last week. Traders noted that the purchase came swiftly in response to the upcoming restrictions, which will ban diesel produced from Russian-origin crude, even if refined outside of Europe. The sanctions are set to take effect on January 21, 2026.

Reliance, led by billionaire Mukesh Ambani, typically sources discounted Russian Urals and heavier Middle Eastern grades. However, people familiar with the company’s plans told Bloomberg that Reliance has now begun exploring alternative suppliers to reduce its dependence on Russian barrels, which have accounted for nearly half of its imports this year, according to data from Kpler.

Since Russia’s invasion of Ukraine in 2022, Indian refiners—particularly Reliance—have capitalised on European avoidance of Russian oil, purchasing it at steep discounts and refining it into products such as diesel for re-export, including to Western markets. Roughly 20% of Reliance’s refined product exports are shipped to Europe, placing the company in direct focus under the EU’s incoming rules.

While the recent Murban crude purchase hints at an early pivot, it remains uncertain how Reliance plans to substitute the nearly 600,000 barrels per day of crude it typically processes. Traders cited by Bloomberg said that the company has started to examine more supply options from the Middle East but acknowledged that securing long-term, competitively priced alternatives at that scale would be a significant logistical and financial undertaking.

Further intrigue emerged when an Airbus jet owned by Reliance Industries was tracked landing at Moscow’s Vnukovo airport on July 23 morning—its first flight to Russia since December, according to FlightRadar24. The nature of the visit and whether Ambani was aboard remain unconfirmed. A Reliance spokesperson declined to comment on either the flight or the company’s evolving crude strategy.

Meanwhile, the Indian government has voiced reservations about the new EU measures. India’s Foreign Secretary Vikram Misri stated earlier this week that there must be “balance” when implementing secondary sanctions on Russian oil and gas.

As the January 2026 deadline approaches, Reliance’s sourcing strategy and its ability to adapt to changing geopolitical and regulatory pressures will be closely watched by the global energy market, Bloomberg noted.