In a significant shift in global trade, India's Reliance Industries Ltd. has opted to bring its Dubai-based crude trading team back to India, as reported by Reuters. This relocation follows the company's establishment of long-term oil supply agreements with Russia and is expected to be completed by the end of this year.

According to a source from Reuters, "Reliance now has a crude import deal with Russia and also maintains ongoing agreements with major Middle Eastern producers, making it unnecessary to bear additional costs for maintaining staff in Dubai." Reliance did not provide a response to Reuters' request for comments.

In 2021, billionaire Mukesh Ambani's private refiner announced the opening of an office in the UAE to facilitate oil and refined fuel trading, including petrochemicals. A year later, the crude trading team was moved to Dubai, which had become a central hub for Russian oil following Moscow's invasion of Ukraine.

Interestingly, Reliance previously purchased minimal Russian oil but now sources about 40% of its crude requirements from Russia, according to trade sources. The company’s two advanced refineries in Jamnagar can process nearly 1.4 million barrels of oil daily and are equipped to handle various heavy crude grades, often sold at discounts that improve profit margins.

Currently, around 20 crude traders operate from Reliance's Dubai office. "Except for 3-4 traders, all will be relocated back to Mumbai," one source noted, adding that the remaining traders will eventually return to headquarters. The company has already communicated these relocation plans to its Dubai traders.

While Reliance plans to keep its product trading team in Dubai for now, it also has trading offices in Houston and London and aims to expand its London team. In the last quarter, Reliance shifted its petrochemical trading team from Dubai to Malaysia, where it operates facilities such as Recron, an integrated polyester and textile company, and RP Chemicals.