Russia’s Fuel Crisis Deepens: Why Moscow Is Turning To Indian Gasoline

Russia has begun importing gasoline from India for the first time as Ukrainian attacks on Russian refineries disrupt domestic fuel supplies, forcing Moscow to look as far as South Asia to plug the growing shortage.

The first shipment arrived in Russia on August 5, according to Kpler data, with further cargoes potentially on the way. The development highlights the severity of Russia’s gasoline crunch and the disruption of its traditional fuel trade routes.

Indian Fuel Enters Russian Market

Indian refiner Nayara Energy has emerged as a key source of the gasoline. The company, backed by Russian oil giant Rosneft, operates a 400,000-barrel-per-day refinery at Vadinar on India’s western coast.

“The emergence of Indian barrels is particularly notable,” said Sumit Ritolia, lead analyst at Kpler.

He said the shipments, alongside continued supplies from Belarus and neighbouring markets, underscore the scale of Russia’s domestic gasoline imbalance as lower refinery output reshapes fuel flows.

The inaugural cargo involved about 42,000 tonnes of gasoline loaded at Vadinar on June 18 aboard the Russian-flagged tanker Cyclone, formerly known as Agni.

The shipment was later transferred to the Oman-flagged Garnet at Egypt’s Damietta port on July 6 before reaching Russia in early August, according to Bloomberg vessel-tracking data.

More Indian Shipments Could Follow

Additional cargoes appear to be following the same route. The tanker Varg loaded nearly 40,000 tonnes of gasoline at Vadinar on July 6 and is believed to have transferred the cargo at Damietta later that month. Another tanker, Photon, departed Vadinar on July 13 before transferring its cargo to the Russian-flagged Talisman at Damietta on July 28-29.

The ultimate destination of some shipments remains unconfirmed. Kpler said the emerging pattern suggests Damietta is increasingly being used as a ship-to-ship transfer hub for Indian gasoline moving into Russian import channels.

Most of the vessels involved are linked to Russia and have been sanctioned by the European Union. Garnet and Talisman have also been sanctioned by the US.

Ukraine Strikes Deepen Fuel Crunch

Russia’s gasoline shortage follows an intensifying Ukrainian campaign against its refining infrastructure. EA Analytics estimates Russian crude-processing rates fell to about 3.6 million barrels per day in July, roughly one-third below seasonal levels.

Ukraine has continued striking refineries, with five processors targeted last week and at least two more attacked this week.

The disruption has forced Moscow to prioritise domestic consumers. Russia has already imposed restrictions on gasoline and diesel exports, a notable reversal for a country that has traditionally been a major supplier of refined fuels.

Nayara Seeks New Markets

Nayara’s role is particularly significant because the refinery has faced growing difficulties accessing international markets following EU sanctions imposed last year.

The company has relied on sanctioned or “dark fleet” tankers and ship-to-ship transfers to move crude and refined products.

The emergence of Russia as a buyer could therefore provide Nayara with an important outlet even as Moscow turns to unconventional sources to address its worsening fuel shortage.