India laps up discounted crude: RIL, Nayara Energy get big chunk of Russia’s flagship oil exports; Reliance world’s single biggest buyer of Urals
Russian crude seaborne for India: India has emerged as the main destination for Russian seaborne exports of Urals oil grade in 2025, accounting for 80% of shipments. India’s two private refineries have significantly increased their procurement of this discounted crude.Data from Kpler quoted in a Bloomberg report shows that India purchased 231 million barrels of Urals through June 24, with Reliance Industries Ltd. and Nayara Energy Ltd. collectively acquiring 45% of Russia’s exports of this medium-sour grade.The share of Urals acquisitions by the two private Indian refiners has shown consistent growth over recent years, with a notable increase in 2025. Reliance, having secured 77 million barrels this year, has established itself as the largest global purchaser of Urals.Reliance Industries, owned by billionaire Mukesh Ambani, has secured a decade-long contract with Russia beginning January to purchase up to 500,000 barrels of oil daily. According to Kpler data quoted in the report, Urals crude now constitutes 36% of Reliance’s total crude acquisitions, rising from 10% in 2022. For Nayara, Urals represents 72% of its oil procurement, a substantial increase from 27% three years ago.Also Read | ‘Highest in two years’: India increases oil imports from Russia, US amidst Iran-Israel war; why it’s about strategic positioning, not panicThe country’s growing Urals procurement, controlling 74% of the grade’s exports in 2024, underscores both India’s reliance on Russian energy and its vital role in generating revenue for Russia, according to the Bloomberg report. Chinese independent refineries, traditionally keen buyers of Russian oil, have reduced purchases due to stringent tax policies and subdued domestic demand.The primary government-owned refineries in India, including Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp Ltd., have not established long-term agreements with Russia. These companies face additional restrictions regarding the currencies they can use for crude oil purchases.Also Read | Reducing acute dependence, countering China’s near monopoly: India readies Rs 5,000 crore scheme for rare earth mineralsThe increased Russian oil purchases by Reliance and Nayara have limited the availability of Urals crude and reduced spot market discounts compared to Dated Brent for India’s government-owned refiners. The discount has shrunk to under $2 per barrel from $4 in the second quarter of the previous year, according to industry sources quoted in the report.For 2025, Hindustan Petroleum is adopting a broader procurement approach, sourcing crude from African nations including Gabon and the Republic of the Congo, according to Yan Rong Fong, who analyses oil markets at Kpler.“With OPEC+ signaling its intent to regain market share, we anticipate an increase in Middle Eastern crude availability over the remainder of the year,” she said. “This could potentially lead to higher Middle Eastern flows to India, particularly from Saudi Arabia.”Also Read | ‘Biggest risk of my life’: Mukesh Ambani says even if Reliance Jio would have failed, it would have been ‘worth it’; told board ‘in worst case…’
