India Becomes Major Gasoline Supplier to Russia Amid Fuel Crisis

ALN NEWS DESK
ALN NEWS DESK
Updated : Aug 31, 2026, 06:01 AM IST
5 min read
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India has emerged as a key supplier of gasoline to Russia, driven by a surge in imports due to Ukrainian drone attacks on Russian refineries.

India has emerged as a key supplier of gasoline (petrol) to Russia amid a surge in Russian fuel imports triggered by Ukrainian drone attacks on refineries, ship tracking data showed.

Russia’s seaborne gasoline imports surged to a record around 125,000 barrels per day (kbd) in August, equivalent to a projected 470,000 tonnes for the month, as repeated attacks on its refineries disrupted domestic fuel production, according to energy analytics firm Vortexa. This increase in gasoline imports highlights not only the immediate impact of the ongoing conflict but also the shifting dynamics of global energy markets.

Indian refiners supplied as much as 1 million barrels of gasoline in the last two months, trade sources said. The supplies essentially came from the Vadinar refinery in Gujarat, operated by Nayara Energy, which is half owned by Russia’s Rosneft. This relationship underscores the deepening ties between India and Russia in the energy sector, which have evolved significantly since the onset of the Ukraine conflict.

Since 2022, India has pivoted towards Russia to meet a bulk of its crude oil — raw material for making fuels like petrol and diesel. The geopolitical landscape has forced many countries to reconsider their energy partnerships, and India’s decision to increase its imports from Russia reflects a pragmatic approach to securing energy resources amidst global volatility.

India’s purchases of Russian crude oil hit a record high as the conflict in the Gulf squeezes supply from other sources. In fact, India imported more than 2.6 million barrels per day of Russian crude in June and July, up from a low of 1 million bpd in February, accounting for more than half of the country’s crude imports. This shift not only provides India with a stable supply of crude oil but also allows Russia to mitigate some of the financial impacts of Western sanctions.

It’s likely that fuel exported to Russia may have been made from Russian crude, illustrating a complex web of energy transactions where the origin of the fuel can become obscured. This situation raises questions about the ethical implications of such trading practices, especially in light of the ongoing conflict and the sanctions imposed on Russia by various countries.

Russia, one of the largest crude exporters, has to import gasoline after Ukrainian drone attacks on its energy infrastructure led to up to a 70 percent drop in domestic production. This disruption has created a significant fuel supply crunch, forcing Moscow to seek imports while continuing to impose restrictions on fuel sales across the country. The internal fuel crisis has prompted the Kremlin to take drastic measures, including extending export bans to ensure domestic availability.

India, Turkey, and Morocco supplied gasoline to Russia in August, as Moscow grappled with a growing mismatch between domestic fuel supply and demand. This situation illustrates how countries outside of the immediate conflict zone can become inadvertently involved in the geopolitical ramifications of the war through their energy exports.

In July, Russia extended its full export ban on gasoline for both producers and non-producers through the end of January 2027. Its diesel export ban was extended through September 1, 2026. The extended bans reflect the severity of the situation within Russia, as it struggles to balance domestic consumption with international demand.

Around 55 percent, or about 260,000 tonnes, of Russia’s imported gasoline in August arrived on sanctioned tonnage, Vortexa said. This statistic highlights the complexities and challenges of navigating international sanctions while attempting to maintain energy supplies. “All India-origin gasoline cargoes Russia imported in August were carried on sanctioned fleets and involved dark ship-to-ship (STS) transfers in the Mediterranean,” it said. This method of transfer, which obscures the origins and destinations of shipments, has become increasingly common as countries seek to circumvent sanctions.

Overall, around 40 percent of Russia’s August gasoline imports moved via ship-to-ship transfers, with the majority conducted in the dark, with vessels switching off their automatic identification system (AIS) signals. This practice raises concerns about maritime safety and the potential for illicit activities, as the lack of tracking can lead to increased risks on the high seas.

While gasoline imports have surged, Russian diesel exports remain severely constrained by the export ban, refinery damage, and disruptions at fuel terminals. The ongoing conflict has not only affected the production capacity but also the infrastructure necessary for transporting and exporting fuel. Vortexa noted that 32 attacks were carried out on Russian refineries during July and August, roughly one every other day, indicating a sustained effort to disrupt Russian energy production.

Russia’s seaborne diesel/gasoil exports were around 150,000 bpd in August through August 25, flat month-on-month but down 610,000 bpd from a year earlier and 81 percent below the five-year seasonal average, Vortexa said. This decline in diesel exports reflects the broader challenges facing Russia's energy sector as it adapts to a new reality shaped by external pressures and internal vulnerabilities. As the situation continues to evolve, it is likely that Russia will need to continue importing some gasoline volume to meet its domestic needs.

In conclusion, India’s role as a major gasoline supplier to Russia amidst the ongoing fuel crisis illustrates the complexities of global energy markets and the geopolitical ramifications of the Ukraine conflict. As countries navigate these turbulent waters, the implications for energy security, international relations, and economic stability will continue to unfold.

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