In a big development that has shaken India’s energy sector, Reliance Industries Limited (RIL), the country’s largest private refiner, has come out strongly to deny reports that it is receiving shipments of Russian crude oil. The company said its huge Jamnagar refinery in Gujarat has not got any Russian oil in the last three weeks and does not plan to get any in January 2026. This statement comes right after US President Donald Trump warned that America could slap higher tariffs on India if it keeps buying cheap Russian oil. Trump’s words have put pressure on Indian companies, and Reliance’s move shows how careful refiners are becoming in this tricky situation.
India has been buying a lot of Russian oil since the Russia-Ukraine war started in 2022, because it was sold at lower prices. This helped India save money on fuel imports. But now, with Trump back in power, things are changing. He has said India is taking advantage of cheap Russian oil, and he wants to stop that. As a result, India’s imports from Russia have fallen to their lowest in three years, at about 1.2 million barrels per day in December 2025. Reliance’s denial is part of this bigger shift, and it has also hit the company’s stock price hard, with shares dropping almost 5% on Tuesday, wiping out more than $12 billion in market value.
Background of the Controversy
The trouble started when Bloomberg, a well-known news agency, reported that three ships carrying Russian oil were heading to Reliance’s Jamnagar refinery. Jamnagar is the world’s largest refining complex, able to process over 1.2 million barrels of oil a day. The report said these ships were bringing discounted Russian crude, which India has been buying a lot of to keep fuel costs down.
But Reliance quickly said this was not true. In a statement posted on X (formerly Twitter), the company said, “A news report in Bloomberg claiming ‘three vessels laden with Russian Oil are heading for Reliance Industries Limited’s Jamnagar refinery’ is blatantly untrue.” They added that they have not received any Russian cargo in the past three weeks and are not expecting any in January. The company even said they were “deeply pained” that Bloomberg ignored their earlier denial and published a report that hurt their image.
This is not the first time Reliance has stopped buying Russian oil. Back in November 2025, the company halted imports to its export-only Special Economic Zone (SEZ) refinery at Jamnagar. A spokesperson said at the time, “We have stopped importing Russian crude oil into our SEZ refinery with effect from November 20.” This was to follow EU sanctions, which do not allow fuels made from Russian oil to be sold in Europe. From December 1, 2025, exports from that part of the refinery are using non-Russian oil to keep them eligible for European markets.
The timing is important because Trump has been talking tough. On Sunday, he said the US could raise tariffs on India even more if it does not cut back on Russian oil. Trump claimed that Prime Minister Narendra Modi is reducing imports “to make me happy.” This has made many in India worry about trade ties with the US, which is a big market for Indian goods.
India’s overall imports from Russia have indeed dropped. Data from tracking agencies like Kpler show that in December 2025, imports were down to 1.2 million barrels per day, the lowest since late 2022. Before this, India was buying up to 2 million barrels a day, making it one of Russia’s top customers after China.
Reliance’s Response and Official Statements
Reliance has been clear and firm in its response. The company’s statement not only denied the Bloomberg report but also pointed out that they had already told the media they were not buying Russian oil for January delivery. They said Bloomberg ignored this and went ahead with a wrong story.
A Reliance official, speaking on condition of not being named, told reporters, “Our Jamnagar refinery is running on other sources of crude now. We are committed to following international rules and keeping our business strong.” This shows how Reliance is trying to balance India’s energy needs with global pressures.
Other Indian refiners are also being careful. State-owned companies like Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) have cut back on Russian oil. Nayara Energy, which is part-owned by Russia’s Rosneft, is still buying some, but overall, the trend is down. The government is asking refiners to share weekly data on imports from Russia and the US, so they can show proof to Washington if needed.
US officials have welcomed this. A State Department spokesperson said, “We appreciate India’s steps to diversify its energy sources and reduce reliance on Russian oil.” But Trump has been blunt. In a recent interview, he said, “India has been getting oil from Russia at a very low price, and we’re going to put tariffs on that if they don’t stop.”
Prime Minister Modi has not directly commented, but sources in the government say India is working on a balanced approach. External Affairs Minister S Jaishankar said in a press meet last month, “Our energy decisions are based on what’s best for Indian people, but we value our ties with the US.”
Impact on Reliance Shares and the Market
The news has hit Reliance hard in the stock market. On Tuesday, January 6, 2026, Reliance shares fell by nearly 5% on the Bombay Stock Exchange. This meant the company’s market value dropped by over $12 billion in one day. Investors are worried about how the tariff threats and oil import changes will affect profits.
Reliance is not just an oil company; it has businesses in telecom, retail, and more. But oil refining is a big part of its earnings. Buying cheap Russian oil had helped boost margins, but now switching to costlier sources from the Middle East or the US could squeeze profits.
The broader Indian stock market also felt the heat. Oil marketing companies like BPCL and HPCL saw their shares dip by 2-3%. Analysts say if tariffs come, it could hurt exports in sectors like pharma, IT, and textiles, which send a lot to the US.
One market expert, speaking to a business channel, said, “This is a wake-up call for India to diversify its oil sources. Reliance’s move is smart, but it will cost more in the short term.”
Broader Implications for India-US Relations
This episode shows the growing tensions in India-US trade. The US is India’s largest trading partner, with bilateral trade over $190 billion last year. But Trump wants to fix what he calls “unfair” deals. He has already talked about tariffs on Indian goods, and the oil issue adds fuel to the fire.
India has been trying to build stronger ties with the US through groups like the Quad (with Japan and Australia) to counter China. But energy is a weak spot. India needs cheap oil to keep inflation low and growth high. Russian oil saved India billions, but now that saving is at risk.
Experts say India might buy more from the US, Saudi Arabia, or Iraq. In November 2025, India bought its first LPG from the US, a sign of shifting alliances. But this could make fuel pricier for common people.
A think-tank report from Delhi said, “India must negotiate hard with the US for better trade terms while securing alternative oil supplies.”
India’s Energy Strategy Moving Forward
India is the world’s third-largest oil importer, needing over 5 million barrels a day. Russian oil made up 40% of imports at its peak, but now it’s falling. The government is pushing for more renewable energy, like solar and wind, to reduce dependence on imports.
Reliance itself is investing in green energy. Chairman Mukesh Ambani has said the company aims to be net-zero carbon by 2035. This could help in the long run.
But for now, refiners are in a tough spot. If tariffs hit, it could slow India’s economy, which is growing at 7% a year. The government might subsidize fuel or talk to Trump for relief.
As one oil industry insider put it, “It’s a game of balance. India can’t afford to anger the US, but it can’t ignore energy security either.”
Reliance’s denial of Russian oil shipments is a clear sign of how global politics is affecting India’s energy choices. With Trump’s tariff warnings looming, Indian refiners are treading carefully. While this might hurt in the short term, it could push India towards more diverse and sustainable energy sources. The coming months will show how India navigates this challenge, keeping its economy strong and relations with the US intact.
FAQs
What did Reliance Industries say about the Russian oil reports?
Reliance strongly denied a Bloomberg report claiming three ships with Russian oil were heading to its Jamnagar refinery. The company said it has not received any Russian crude in the past three weeks and expects none in January 2026. They called the report “blatantly untrue” and said it ignored their earlier denial, hurting their image.
Why is Reliance stopping Russian oil imports?
Reliance halted imports to its SEZ refinery from November 20, 2025, to comply with EU sanctions. These rules ban fuels made from Russian oil from being sold in Europe. The company wants to keep exporting to the EU, so it’s switching to non-Russian sources. Also, US pressure through tariff threats is making Indian refiners cautious.
What has Donald Trump said about India’s Russian oil buys?
Trump has warned that the US could raise tariffs on India if it does not cut Russian oil imports. He claimed PM Modi is reducing buys “to make me happy.” Trump sees India’s cheap Russian oil purchases as unfair and wants India to buy more from the US instead.
How has this affected India’s overall Russian oil imports?
India’s imports from Russia dropped to 1.2 million barrels per day in December 2025, the lowest in three years. This is down from peaks of over 2 million barrels. State refiners and private ones like Reliance are cutting back due to sanctions and US warnings.
What impact did this have on Reliance’s stock?
Reliance shares fell nearly 5% on January 6, 2026, losing over $12 billion in market value. Investors fear higher costs from switching oil sources and possible US tariffs affecting the business.
Will this make fuel prices higher in India?
Possibly yes, in the short term. Russian oil was cheaper, saving India money. Switching to sources like the Middle East or US could raise costs, which might pass on to consumers. But the government could step in with subsidies or better deals.
What is India’s plan for energy security now?
India is diversifying imports, buying more from the US and others. It’s also pushing renewables to cut dependence on foreign oil. Reliance is investing in green energy, aiming for net-zero by 2035.