As Ukraine Strikes Refineries, Russia Turns to India for Fuel
Top Russian energy companies have approached Indian refiners for additional gasoline supplies, following Ukrainian drone attacks that have crippled a significant portion of Russia's refining capacity, according to two sources familiar with the matter.
This unusual request marks a reversal in the energy trade relationship between the two nations. India, the largest buyer of Russian seaborne crude oil, is now being asked to supply refined fuel to Moscow, highlighting the severity of the disruption caused by the strikes.
At least one cargo of Indian gasoline has already been shipped to Russia, and more are expected. One source said nearly 40% of Russia's refining capacity may remain offline for at least two months if no further attacks occur.
Russian firms including Rosneft, Gazprom Neft, and Lukoil have reached out to Indian state-run and private refiners. Any deals would likely be routed through traders, the source added.
However, sources at three Indian state refiners said they have no surplus gasoline to export. They spoke on condition of anonymity due to the sensitivity of the matter.
Major Indian state refiners—Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corp—as well as the three Russian companies and Russia's energy ministry did not respond to requests for comment.
Indian Oil Minister Hardeep Singh Puri earlier this month stated that Indian companies are not directly selling fuel to Russia, though it was possible that Russian entities purchased Indian-origin fuel from traders.
One source noted that future supplies could be transferred via ship-to-ship transfers, and Russia might seek diesel if further refining capacity is knocked out, though diesel supplies are currently adequate.
Reuters had earlier reported that traders sold gasoline produced by Nayara Energy, partly owned by Rosneft, to Russia. Tanker tracking data from Kpler shows the tanker Agni loaded 42,000 metric tonnes of gasoline from Nayara's Vadinar port and transferred the cargo to the vessel Garnet near Egypt, which is expected to reach Russia's Vitino port around July 26. Another tanker, Varg, also carrying Nayara gasoline, is bound for Suez for a similar transfer.
Nayara Energy denied selling fuel to Russian companies, stating: "Nayara Energy remains committed to serving the Indian market and meeting the demand for fuels across the length and breadth of India."
