The Russia-Ukraine war has taken a new turn. Ukraine is now launching frequent drone attacks on Russian oil refineries, particularly those near Moscow. Russia is grappling with the consequences of these attacks; production at these refineries has stalled, leading to fuel shortages. Consequently, the country is forced to import petrol and diesel from abroad.
Amidst this crisis, India has emerged as a key partner for Russia in fuel supply. In August, India accounted for 70% of Russia’s total fuel imports—a volume approximately seven times higher than that of the previous month. According to the latest report by the Centre for Research on Energy and Clean Air (CREA), Russia imported a total of 172,000 tonnes of petroleum products in August. India’s share of this amounts to 120,000 tonnes of petrol, with an estimated value of approximately 78 million euros. While this figure stood at just 6% during the 2023–25 period, it surged to 74% in August.
According to the report, all the petrol exported from India originated from the Vadinar refinery in Gujarat. This fuel was supplied by Nayara Energy—a company in which the Russian state-owned firm Rosneft holds a 49.13% stake. During the first eight months of this year, the Vadinar refinery sourced all its crude oil from Russia and processed it into fuel. Unable to produce sufficient fuel domestically, the country is transporting oil from other parts of the world via sea routes. Gasoline shipments originating from India are first transferred to another vessel off the coast of Egypt before being offloaded at Russia’s Arctic port of ‘Belomorsk’. Persistent drone attacks by Ukraine have severely damaged Russia’s oil refineries and ports.
No petroleum products have been exported for three consecutive months from Tuapse, Russia’s fourth-largest oil export port. Similarly, crude oil exports from the Black Sea port of Novorossiysk have declined by 58%. Similarly, while Russia’s seaborne oil exports declined by 21% in August, the daily revenue generated from these exports fell by 32% to reach 78 million euros. Other countries that supplied oil to Russia in August included South Korea (18,000 tonnes) and Egypt (25,000 tonnes).
Meanwhile, India ranks second only to China in terms of crude oil imports from Russia. In August, India purchased crude oil worth 4.8 billion euros from Russia. Notably, India has increased its crude oil purchases from Russia since the outbreak of the Russia-Ukraine war.
