Reliance Responds to Chinese Restrictions and Sanctions by Adjusting Its Global Supply Chains

Reliance Industries Ltd., led by Indian billionaire Mukesh Ambani, is currently facing significant challenges in both its energy and technology supply chains. Recent developments reveal the company’s dependence on international markets as it adapts to shifting geopolitical and regulatory environments. Reliance has recently sped up the export of battery parts from China,

before new export restrictions take effect, while also and increasing its crude imports from both the Middle East and the United States to compensate for supply interruptions caused by Western sanctions on Russian oil companies.

The company’s battery division, which is central to its renewable energy storage ambitions, is encountering immediate obstacles as China imposes stricter controls on the export of essential battery manufacturing equipment. According to the Business Standard, Chinese regulators have implemented new rules this month requiring export licenses for such equipment, effective November 8. A Reliance delegation has traveled to China to speed up shipments, and sources say that at least a dozen other international clients are also rushing their orders, sometimes skipping quality inspections to meet tight deadlines. The report notes that if Reliance cannot obtain Chinese equipment promptly, its plans to assemble batteries domestically for solar projects—an important part of India’s energy self-sufficiency efforts—could be delayed.

At the same time, Reliance has shifted its crude oil procurement approach in light of U.S. sanctions on Russian firms Rosneft and Lukoil. The company has acquired millions of barrels of crude from the Middle East and the U.S., including varieties such as Saudi Khafji, Iraqi Basrah Medium, and Qatari Al-Shaheen, with shipments scheduled for December and January,

. Market participants observe that Reliance has been particularly active in the spot market this month, purchasing at least 10 million barrels, most of which were bought after the sanctions, Bloomberg reported. Previously, the company relied on long-term contracts for Russian crude, but it is now focusing on diversifying its sources to better manage regulatory risks, Bloomberg also noted.

These developments highlight Reliance’s efforts to balance its technological goals with the realities of global politics. The Business Standard pointed out that China’s dominance in the battery industry—home to six of the world’s top ten producers—makes companies like Reliance susceptible to changes in Chinese export policies. Meanwhile, sanctions on Russian oil have prompted Indian refiners to quickly adjust their sourcing strategies, leading to increased spot purchases from the Middle East, the U.S., and Brazil, according to Bloomberg.

A Reliance spokesperson commented on the changing situation, saying the company is "evaluating the impact of sanctions on Russian oil supplies and the export of refined products to Europe," and emphasized its ongoing commitment to operational stability through diversified sourcing, Bloomberg reported.

As international supply chains grow more complex due to trade disputes, Reliance’s actions mirror wider industry anxieties about depending too heavily on single suppliers. Chinese battery manufacturers have reassured customers that export licenses will be processed smoothly under the new rules, but the uncertainty has led companies to take a more cautious and reactive approach, the Business Standard reported.