Mukesh Ambani’s Reliance is under U.S. pressure for importing discounted Russian oil

Source Cryptopolitan

Mukesh Ambani just got shoved into the middle of a geopolitical mud fight, and we’re pretty sure it’s not one he signed up for.

The world’s richest Indian businessman, who normally prefers to control narratives from inside his Reliance boardroom, is now being dragged into the messy standoff between Washington and New Delhi over one thing: Russian oil. And also, Putin.

Trump’s decision to double tariffs on Indian goods directly targets Reliance’s massive, discounted oil imports from Russia, which have allegedly saved the company hundreds of millions of dollars this year.

But here’s the thing: Russian oil isn’t sanctioned, so technically no laws are being broken. Still, the optics are brutal. Buying from Rosneft under a long-term supply deal now looks like a geopolitical gamble, especially since that deal is tied to Reliance’s cutting-edge Jamnagar refining complex.

Washington fumes, Delhi deflects, Reliance ducks

Now let’s be real, Reliance doesn’t want any part of this. Their refining ops are world-class, and the Jamnagar site can process everything from sweet light crude to the gunk scraped off a pirate ship’s bilge. But the lifeblood of that business is cheap oil.

And Russia’s been handing out discounts like it’s a Diwali sale. A 10-year supply pact with Rosneft went live earlier this year, locking in rates well below market. According to Bloomberg’s math here, Reliance saved at least $571 million in the first half of 2025 alone. That’s before you even count shipping or insurance.

Yet that savings now has a cost. The U.S. wants India to stop buying Russian barrels and switch to American supply. But ditching Rosneft means breaching a deal, ceding market advantage, and (more importantly) undercutting the Indian government’s position.

India never joined Western sanctions. It’s been loud and clear that it will keep buying where the prices work. So Reliance is basically being asked to walk a diplomatic tightrope on stilts. Fun, huh?

And while the Trump administration hasn’t named names, they’re never exactly subtle. White House trade advisors have called out India’s richest families for “war profiteering,” again, not naming Mukesh, but come on. His company is the single biggest importer of Russian crude in the country. What more needs to be said?

Jio, clean energy, and the quiet oil shuffle

At Reliance’s much-hyped investor meeting, you’d think oil would be the hot topic, but according to Bloomberg, Mukesh plans to stay away from that landmine, in that his keynote won’t even mention Russia at all.

Instead, the spotlight will be on Jio’s AI innovation. But make no mistake, the company’s transition away from fossil fuels has been a decade in the making.

Oil, gas, and chemicals still account for over 50% of Reliance’s revenue, and 40% of its EBITDA. The digital services arm only overtook refining in profitability recently. So, for all the AI and EV chatter, crude oil still pays the bills.

That’s why Reliance isn’t throwing away Russian barrels just because the U.S. is angry. The company has always hunted for deals that give it a competitive edge.

Back in 2012, they locked in a 15-year deal to buy Venezuelan crude, notoriously heavy and dirty. They ran with it until U.S. sanctions killed the trade. Then came a waiver from Biden. But even that lifeline dried up in May.

So, what’s the next move? The company’s been testing new waters. West Africa. Middle East. U.S. Earlier this week, they quietly bought 2 million barrels of American crude, set to load in October. Some say it’s a peace offering. Others call it hedging.

Mukesh, true to form, is saying nothing publicly. But his actions speak loud. No flashy statements on oil. Just deals being made in the background while the spotlight shifts to digital and green energy. Internally, the company is focused on buying whatever crude works on the spreadsheet, regardless of where it comes from.

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