Reliance Industries has announced a complete halt to Russian crude oil imports in January, leading to a significant market reaction that wiped ₹94,000 crore from the company's market capitalization. The oil-to-chemicals conglomerate confirmed that its Jamnagar refinery has not received any Russian oil cargoes for approximately three weeks and does not anticipate any deliveries in January.

Company Denies Bloomberg Report

The clarification came after Reliance Industries denied a Bloomberg news report suggesting that three vessels laden with Russian oil were heading for its Jamnagar refinery. The company issued a statement on X (formerly Twitter) on Tuesday, categorically refuting the report and reaffirming its commitment to avoiding Russian crude oil deliveries.

Stock Performance Impact

The announcement triggered a sharp decline in RIL's share price, with the stock closing at ₹1,507.70, representing a 4.42% drop from its previous close. This marked the biggest single-day fall for RIL shares in 18 months, with the intraday performance showing even more volatility as shares fell as much as 5% to hit a low of ₹1,497.05.

Russian Oil Import History

Reliance Industries had been a major consumer of Russian crude oil, processing an average of 583,000 barrels per day in the previous year. The company processes this crude into diesel, petrol, and jet fuel, which it then exports to markets in the European Union and the US. In November, RIL had already begun phasing out Russian crude imports from its SEZ refinery, with the cessation taking effect from November 20.

The company ensured that all product exports from the SEZ refinery would be sourced from non-Russian crude oil starting December 1, while honoring pre-committed shipments with the final cargo loaded on November 12.

Regulatory and Political Pressure

The decision comes amid mounting pressure from the US administration regarding India's Russian oil imports. In October, RIL had indicated it was assessing the impact of sanctions imposed by the US, European Union, and the UK on crude oil imports from Russia and refined product exports to Europe. The company had committed to complying with EU guidelines and any guidance from India.

US Administration Stance

US President Donald Trump acknowledged that India is reducing its oil purchases from Russia, attributing this to Prime Minister Narendra Modi being a "good guy" who wants to make him happy. However, Trump also issued a warning that Washington could raise tariffs on India "very quickly" if all Russian oil purchases are not completely stopped, highlighting the ongoing geopolitical pressure surrounding energy trade relationships.

Reliance Industries is reportedly planning meetings with investment bankers regarding the initial public offering of Jio Platforms, marking a significant development in the conglomerate's digital strategy.

IPO Size and Strategic Planning

According to ETNow reports, the company is targeting an IPO size between $4 billion and $6 billion for Jio Platforms. This substantial offering would represent one of the larger technology IPOs in the Indian market.

Jio Platforms Overview

Jio Platforms serves as Reliance Industries' digital services arm, encompassing various technology and digital initiatives. The platform has been a key growth driver for the conglomerate, representing its strategic shift toward digital services and technology solutions.

Market Implications

The planned IPO would provide investors with direct exposure to Reliance Industries' digital assets through a separate listed entity. This move aligns with the broader trend of technology companies seeking public market access to fund expansion and growth initiatives.

The banker meetings represent the initial phase of the IPO preparation process, where investment banks typically present their capabilities and strategies for managing the public offering.