Reliance stays away from Russian oil, public sector firms lap it up

Betul (Goa): Reliance Industries Ltd, India's biggest buyer of Russian crude oil, has not bought any barrels from Kremlin in January so far while state-run refiners have stepped up imports prompted by discounts hitting some $7 per barrel, almost triple the level seen in mid-2025.

Reliance, which was touted as the world's biggest buyer of seaborne Russian oil at around 600,000 barrels per day in 2025, did not buy any Russian crude oil in first three weeks of January, industry sources said, and ship-tracking data showed.

HPCL-Mittal Energy ltd -- a joint venture of Hindustan Petroleum Corporation Ltd and the London-based Mittal Group of steel czar Lakshmi Mital -- Mangalore Refinery and Petrochemicals Ltd and HPCL too did not pick up any Russian crude.

However, state-owned Indian Oil Corporation (IOC) bought an average of 470,000 bpd, its highest ever, data from maritime intelligence firm Kpler showed.

IOC had bought 427,000 bpd in December 2025.

State-owned Bharat Petroleum Corporation Ltd (BPCL) bought 164,000 bpd this month, up from 143,000 bpd in December 2025.

Russian oil firm Rosneft-backed Nayara Energy, which has been cut from other suppliers after the European Union slapped sanctions on it, continued to source crude from Russia, buying some 469,000 bpd this month.

Indian imports of Russian oil dipped slightly to 1.1 million bpd in the first three weeks of January from 1.2 million bpd in December. The volumes in both months are much lower than November's 1.84 million bpd, reflecting the impact of US sanctions on Rosneft and Lukoil, Russia's two biggest oil exporters, that came into effect from November 21.

Kpler analyst Sumit Ritolia said India's Russian crude purchases in January 2026 and across Q1 2026 are expected to average around 1.2 million bpd and 1.3-1.5 million bpd, respectively.

"Nayara, BPCL and IOC bought fresh cargoes in January 2026, with others (RIL, MRPL, HMEL) staying out as of now," he said.

Indian refiners are currently sourcing Russian crude through a mix of channels, but the trend for most buyers has shifted toward newer non-sanctioned intermediaries rather than clean, direct liftings from the major Russian producers.

"Direct deliveries linked to Rosneft and Lukoil are still taking place, but they are increasingly concentrated with Nayara, which has continued lifting Russian barrels given its different risk posture and Russian linkage, while other Indian refiners are more selectively buying through non-sanctioned trading entities that have emerged over the last 2-3 months to keep flows moving in a more compliance-friendly structure (for example Alghaf marine, rusexport, etc and other newly active intermediaries)," he added.

Close to 60 per cent of India's Russian imports in January went to state-run refiners IOC and BPCL, and the rest to Nayara Energy.

In January, Rosneft supplied 130,000 bpd oil to India while Lukoil shipped 103,000 bpd. Unsanctioned Surgutneftegas and RusExport shipped the bulk of oil, Kpler data showed.

A Reliance spokesperson had earlier this month stated that the company did not receive a single Russian cargo in January, while its purchases in December were half those in November. HMEL perhaps stopped purchases of Russian crude oil because of the potential impact on the global operations of Mittal Group. HMEL averaged 153,000 bpd of Russian oil imports in 2025.

"Nayara remains structurally more exposed to Russian crude than most Indian peers, as its sanctioned status has reduced access to alternative feedstocks and reinforced reliance on Russian barrels through established supply-chain linkages," Ritolia said.

"However, recent crude import patterns suggest the refinery has continued operating at 90-100 per cent capacity, indicating stable crude sourcing and sustained runs despite the constraints."

On the products side, Nayara has been moving large volumes of fuel produced from crude oil domestically via different channels. Some shipments by sea into a broader set of markets have also been seen.