Reliance Industries, under the leadership of Mukesh Ambani, stands as India's preeminent corporation, amassing consolidated revenues of ₹10.71 trillion (approximately $125 billion) in fiscal 2025. Notably, Reliance International, a key subsidiary dedicated to oil trading, has seen remarkable growth since its inception, escalating revenues from $3.9 billion in its inaugural year to an astounding $30.8 billion in the following year. This surge corresponds with the strategic acquisition of crude oil from international suppliers, specifically processed at the Jamnagar refinery.
A significant shift in Reliance’s oil procurement occurred following the geopolitical upheaval stemming from Russia's invasion of Ukraine. Increased demand for Russian crude oil became apparent, as prices dropped significantly due to sanctions on Russia, making it an attractive option for Indian and Chinese markets. By mid-2022, Russia emerged as Reliance's primary oil supplier, outpacing Iraq.
Reliance Industries has designated Reliance International as a 'material subsidiary,' a classification reserved for units that significantly impact the company's overall income or net worth. This status reflects the increasing importance of oil trading within Reliance's operations, with products worth ₹1.48 trillion purchased from Reliance International in fiscal year 2025. In contrast, sales of refinery products to this subsidiary were valued at ₹1.97 trillion, underscoring a vital flow of goods within the corporate structure, amounting to around 18.4% of Reliance’s consolidated revenue.
The United Arab Emirates, particularly the city of Dubai, has evolved into a critical hub for oil trading, especially in light of Western sanctions against Russia. Many traders have relocated their operations, leveraging the UAE's favorable economic environment and lack of restrictions on Russian oil transactions. This shift has contributed to a marked increase in the operations of oil traders in the UAE, which houses a considerable percentage of 'shadow' tankers engaged in Russian oil trade.
From April 2022, the volume of Russian crude oil purchased by Reliance steadily rose, with plans solidified through a long-term contract signed with Rosneft, securing 500,000 barrels per day. Despite this aggressive purchasing strategy, recent sanctions imposed by the US could force Reliance to recalibrate its sourcing strategy. The sanctions target major Russian oil companies and threaten secondary penalties against entities conducting business with them.
With upcoming EU regulations mandating that imported fuel must prove its non-Russian origin by 2026, Reliance is poised to feel the pressure as it assesses the implications of these sanctions on their supply contracts. The company has stated its intent to adapt to evolving market conditions while maintaining supplier relationships. Reliance continues to express confidence in its diversified crude sourcing strategy, ensuring a steady flow of resources for both domestic and export needs, including potential exports to Europe. This strategic navigation of complex market dynamics exemplifies Reliance Industries' resilience in the global oil landscape.