For the First Time, Russia Imports Gasoline from India After Ukrainian Attacks

Russia has started importing gasoline shipments from India for the first time, a move reflecting the extent of pressure on its domestic fuel market following a series of Ukrainian attacks targeting Russian oil refineries and causing a sharp decline in output.

According to data from energy tracking firm Kepler, the first shipment of Indian gasoline arrived in Russia on August 5, with additional shipments expected in the coming period.

This marks the first time Moscow has imported automotive fuel from a country in South Asia, signaling an expanding supply gap within the Russian market, according to Bloomberg.

Data shows that Indian company Nayara Energy, backed by Russian state-owned Rosneft, has become the primary source of these shipments, with fuel transported via a chain of vessels linked to Russia through ship-to-ship transfers off the Egyptian coast before reaching Russian ports.

Kepler’s senior analyst, Sumit Raitolia, said the appearance of Indian gasoline shipments in the Russian market is a notable development, explaining that these imports, along with supplies from Belarus and some neighboring markets, reflect the severity of the current imbalance in the Russian gasoline market and the extent to which reduced refinery operating rates are reshaping traditional petroleum product trade routes.

This development comes as the global energy market faces repercussions from two concurrent conflicts: the ongoing Ukrainian attacks on Russian oil infrastructure, and continued tensions between the United States and Iran in the Middle East, contributing to tightened global fuel markets.

These conditions have prompted Moscow—once a major exporter of fuel to external markets—to ban gasoline and diesel exports to prioritize meeting domestic demand.

According to estimates from EA Analytics, crude oil refining rates in Russia dropped to around 3.6 million barrels per day in July, a level about one-third below the typical seasonal average, due to waves of attacks targeting refineries.

Since then, Ukraine has intensified operations, targeting five refineries in the past week alone, plus at least two others earlier this week.

Neither Russia’s Ministry of Energy, India’s Ministry of Petroleum, nor Nayara Energy has issued any official comment on these developments, despite requests for comment from Bloomberg.

Since the European Union imposed sanctions on Nayara Energy in July of last year, the company has increasingly relied on what is known as the “shadow fleet” and sea-to-sea transfer operations to import crude oil and export petroleum products.

The company operates the Vadinar refinery on India’s western coast with a daily production capacity of 400,000 barrels and is seeking to expand its export markets, especially after Hindustan Petroleum—a major buyer—increased its domestic fuel production.

Bloomberg’s vessel tracking data shows that the product tanker Cyclone, flying the Russian flag and previously known as Agni, carried approximately 42,000 tons of gasoline from the Vadinar port on June 18, before transferring the cargo to the Oman-flagged tanker Garnet in the Damietta area off the Egyptian Mediterranean coast on July 6, ultimately delivering the shipment to Russia in early August.

Data suggests further shipments may arrive soon: the product tanker Varg carried nearly 40,000 tons of gasoline from Vadinar on July 6, and it is likely conducted a ship-to-ship transfer in the Damietta region late that month, based on changes in the vessel’s draft, according to Kepler data.

Ship-to-ship transfers, abbreviated as STS, are typically used to reduce voyage times and improve shipping efficiency.

The final vessel receiving the Varg shipment has not yet been confirmed, but Kepler speculated that the tanker Best is the likely recipient, after docking in Damietta and recording an increase in draft on July 30 and 31.

The vessel initially declared its destination as the Moroccan port of Tangier but later bypassed it and continues sailing northward in the Atlantic Ocean while still carrying its full cargo, according to tracking data.

In a similar operation, the product tanker Photon, flying the flag of Cameroon, departed Vadinar on July 13, before transferring its gasoline cargo to the Russian-flagged tanker Talisman in Damietta on July 28 and 29, according to vessel movement data.

Data indicates all these vessels, except Garnet, are registered in the Russian registry, while the European Union has imposed sanctions on all vessels involved in these operations, and the United States has also separately targeted the tankers Garnet and Talisman with sanctions.

Although the final destinations of Talisman and Best remain unconfirmed, Kepler stated in its report that the emerging shipping pattern points to Damietta’s maritime transfer hub continuing to play a key role in facilitating the flow of Indian-produced gasoline into Russian import channels, reflecting a clear shift in fuel trade routes due to the pressures Russia faces in producing petroleum derivatives.