US-India Trade War Puts Mukesh Ambani’s Russian Oil Windfall in Focus

Escalating trade tensions between the United States and India have drawn renewed attention to Mukesh Ambani’s lucrative gains from importing discounted Russian crude oil. Reliance Industries, operating the world’s largest single-site refinery in Jamnagar, sources nearly 30% of its crude from Russia under long-term agreements with Rosneft. This pivot followed Western sanctions on Moscow after the 2022 Ukraine invasion, which enabled Indian refiners to buy oil at steep discounts.

Analysts estimate Reliance has earned around $6 billion in additional profit from these purchases, part of a $16 billion windfall for Indian refiners collectively. While External Affairs Minister S. Jaishankar defends the imports as a “moral duty” to secure affordable energy, critics argue that private refiners disproportionately benefit by exporting refined products such as diesel and jet fuel to global markets.

The dispute has been amplified by U.S. President Donald Trump’s imposition of 50% tariffs on Indian goods, citing India’s role in funding Russia’s war. The move places Ambani and Prime Minister Narendra Modi at the heart of a geopolitical and economic storm.

With domestic fuel prices still high and calls for alternative energy sources growing, Reliance faces the challenge of balancing profit-making, energy security, and heightened international scrutiny.