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Explore how Mukesh Ambani’s Reliance Industries has driven India’s jump in Russian crude oil imports—from 3% pre-Ukraine war to ~50%—and its geopolitical ripple effects.
How Mukesh Ambani’s Reliance Powers India’s Surge in Russian Oil Imports
India’s reliance on Russian crude has surged dramatically, with Mukesh Ambani’s Reliance Industries (RIL) at the helm of this shift. This move, which has reshaped global energy flows, has ignited intense debate among global leaders, analysts, and policymakers.
The Numbers Behind the Shift
Before Russia invaded Ukraine, only about 3% of Reliance’s Jamnagar refinery’s crude supply came from Russia. Now, that figure has skyrocketed to nearly 50%.
Between January and July 2025, the Jamnagar refinery processed 18.3 million tonnes of Russian crude—valued at approximately $8.7 billion.
Globally, Reliance exported $85.9 billion of oil products from February 2023 onwards. Of that, 42% (about $36 billion) went to sanctioning countries, including €17 billion to the EU and $6.3 billion to the US—$2.3 billion of which was made from Russian crude.
A Financial Times review estimates that Indian refiners collectively gained $16 billion from discounted Russian crude, with Reliance alone pocketing around $6 billion.
Why Reliance Opted for Russian Oil
- Price Advantage: The G7-imposed $60 per barrel price cap on Russian crude made it highly attractive—and since enforcement has been loose, Reliance has enjoyed substantial discounts.
- Market Strategy: With its massive refinery capacity, Reliance had to secure cost-effective feeds. Russian oil provided the needed volume at a lower cost, aiding both domestic fuel affordability and export competitiveness.
Global Repercussions and U.S. Backlash
The U.S. government sees this as more than a business decision—an enabler of Russia’s wartime economy. White House Trade Adviser Peter Navarro and Treasury Secretary Scott Bessent have accused Indian refiners of profiteering.
Bessent warned that India’s oil imports have gone from less than 1% to as much as 42%, generating $16 billion in excess profits for some of India’s wealthiest families.
In response, President Trump raised U.S. tariffs on Indian goods to 50%, with half attributed explicitly to India’s Russian oil trade.
India’s Strategic Calculus and Defense
New Delhi defends its energy strategy as rooted in economic realities—not geopolitical posturing. Foreign Minister S. Jaishankar emphasized that India isn’t the largest importer of Russian oil and has diversified energy imports, including increasing American supplies.
Economists like Nobel laureate Abhijit Benerjee urge India to weigh the wider trade-off—continued reliance on Russian oil might jeopardize broader U.S. ties.
What Lies Ahead for Reliance and India
Reuters analysts suggest that if U.S. pressure mounts or enforcement tightens, Reliance could pivot back to Middle Eastern suppliers owing to proximity, established relationships, and stable output.
However, as of now, reliance on Russian crude remains central to India’s energy strategy—balancing cost, supply security, and geopolitical autonomy.
Reliance Industries, under Mukesh Ambani, has emerged as the engine behind India’s pivot to Russian oil—jumping from 3% to nearly 50% in its Jamnagar refinery supply. This has brought windfall profits amid global tensions, triggering sharp criticism from the U.S. and raising questions about the future of India’s energy partnerships and diplomacy.
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