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RAS question

Reliance Industries stopped importing Russian crude oil into its Jamnagar SEZ refinery from December 2025. This decision was primarily driven by:

Correct answer: (B) Upcoming EU ban on fuel made from Russian oil through third countries and US sanctions.

Reliance Industries stopped using Russian crude for exports from its Jamnagar refinery primarily to comply with the EU's January 21, 2026 restriction on fuel made from Russian oil through third countries and US sanctions on Rosneft and Lukoil.

  1. (A)

    Declining quality of Russian crude oil

  2. (B)

    Upcoming EU ban on fuel made from Russian oil through third countries and US sanctions

  3. (C)

    India's own ban on Russian energy imports

  4. (D)

    Exhaustion of Russian crude oil reserves

Explanation

Reliance's move was a sanctions-compliance decision, not a crude-quality or domestic-ban issue. The Financial Express report says Reliance stopped importing Russian crude into its Jamnagar refining complex and that, from December 1, product exports from the refinery would be made from non-Russian crude. It also states that Reliance completed the transition ahead of schedule to comply with product-import restrictions coming into force on January 21. The same report links the wider pressure to sanctions on Russia, including fresh US sanctions targeting Rosneft and Lukoil. This matches the explanation: Reliance was adjusting crude sourcing because fuel made from Russian oil could face restrictions in export markets, while India itself had not banned Russian energy imports.

Why the other options are wrong

  • (A) The cited report and the explanation attribute Reliance's decision to sanctions compliance and product-import restrictions, not to any decline in the quality of Russian crude oil.
  • (C) India had not imposed its own ban on Russian energy imports, so Reliance's decision cannot be explained as compliance with an Indian prohibition.
  • (D) Nothing in the source or explanation says Russian crude reserves were exhausted; the stated issue was the sanctions environment around Russian oil and refined-product exports.

Concept

This tests the Indian Economy theme of how external sanctions and trade restrictions affect India's energy imports and refinery-export strategy. It recurs in RAS because crude sourcing, sanctions compliance and export-market access directly shape current economic policy questions.

Source

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