India Emerges as Key Petrol Supplier to Russia Amid Refinery Disruptions

India has emerged as a key supplier of gasoline to Russia amid a surge in Russian fuel imports triggered by Ukrainian drone attacks on energy infrastructure, according to recent ship tracking and energy data.

Data from energy analytics firm Vortexa shows that Russia's seaborne gasoline imports surged to a record of around 125,000 barrels per day (kbd) in August. This is equivalent to a projected 470,000 tonnes for the month, as repeated attacks on refineries disrupted domestic fuel production. Trade sources report that Indian refiners supplied as much as 1 million barrels of gasoline in the last two months, with supplies coming primarily from the Vadinar refinery in Gujarat, operated by Nayara Energy, which is half-owned by Russia's Rosneft. It is likely that the fuel exported to Russia was made from Russian crude.

Since 2022, India has pivoted towards Russia to meet a bulk of its crude oil needs. India's purchases of Russian crude hit record highs as the conflict in the Gulf squeezed supply from other sources. Imports exceeded 2.6 million barrels per day in June and July, up from 1 million bpd in February, accounting for more than half of the country's crude imports.

The disruptions have forced Moscow to import petroleum products while continuing to impose domestic fuel sales restrictions. Russia recorded up to a 70 percent drop in domestic production due to attacks on its energy infrastructure. In August, India, Turkey, and Morocco supplied gasoline to Russia. Meanwhile, Russia extended its full export ban on gasoline through the end of January 2027, and its diesel export ban through September 1, 2026.

Vortexa reported that all India-origin gasoline cargoes imported by Russia in August were carried on sanctioned fleets and involved dark ship-to-ship (STS) transfers in the Mediterranean. Overall, around 40 percent of Russia's August gasoline imports moved via ship-to-ship transfers, with the majority conducted with vessels switching off their automatic identification system (AIS) signals.

While gasoline imports surged, Russian diesel exports remain severely constrained by export bans, refinery damage, and disruptions at fuel terminals. Vortexa noted 32 attacks were carried out on Russian refineries during July and August, averaging roughly one every other day. Russia's seaborne diesel/gasoil exports stood at around 150,000 bpd in August through August 25, which is flat month-on-month but significantly lower than historical averages.

"This trade dynamic highlights the complex and evolving nature of global energy supply chains amidst geopolitical conflicts. Refineries operating with diversified feedstock and strong international connectivity are uniquely positioned to respond to sudden market shifts and supply deficits. For businesses, this situation underscores the importance of supply chain resilience and adaptability when navigating regulatory and logistical hurdles in international trade." — Dr. Shishir Gupta, Founder & CEO, StartupLanes