Russia Buys Record Fuel From India as Ukrainian Strikes Cripple Its Refineries

Russia imported a record 172,000 tonnes of refined oil products in August, including petrol produced from Russian crude at an Indian refinery partly owned by Russian state oil company Rosneft, according to a report by the Centre for Research on Energy and Clean Air (CREA).

India supplied 70 per cent of Russia's oil product imports during the month, including 120,000 tonnes of petrol valued at 78 million euros, CREA said in its monthly analysis of Russian fossil fuel exports and sanctions. The volume was more than seven times the previous monthly record and three times the amount imported in the whole of 2025.

All of the petrol from India was loaded at the Vadinar refinery in Gujarat and sold by Nayara Energy, which is subject to European Union sanctions, to Rosneft, the report said. Rosneft holds 49.13 per cent of Nayara Energy. Vadinar sourced all of its crude from Russia during the first eight months of 2026, compared with 81 per cent for all of 2025.

"Russia is therefore paying a refinery that it partly owns to process its own crude into fuel it can no longer produce domestically, before shipping it back halfway around the world," CREA said.

The shipments reflect the effect of a sustained Ukrainian drone campaign against Russian refineries and energy infrastructure, which has reduced domestic fuel production and contributed to shortages, according to the report.

Each cargo of petrol sent from Vadinar to Russia was transferred between vessels in a ship-to-ship operation off Egypt before being unloaded at Russia's Arctic port of Beloe More. All the vessels involved were sanctioned tankers, and four of the six had earlier operated under false flags, CREA said.

Petrol accounted for 74 per cent of Russia's total oil product imports in August, against an average of just 6 per cent between 2023 and 2025. South Korea supplied a further 18,000 tonnes of oil products, mostly gasoil, while Egypt exported 25,000 tonnes of diesel worth 16 million euros.

Russia's seaborne oil product exports fell 21 per cent by volume in August, and revenue from products unloaded at destination ports dropped 32 per cent from July to 78 million euros a day — the lowest level since Russia's full-scale invasion of Ukraine. Loadings at Russian ports have declined for three consecutive months and are less than half their August 2025 level.

Tuapse, Russia's fourth-largest oil product export port before the invasion, did not load a single cargo for the third month in a row after sustained Ukrainian drone attacks since May. Strikes also disrupted crude exports through the Black Sea port of Novorossiysk, where loadings fell 58 per cent month on month and stopped for nine consecutive days — the longest interruption recorded at the port since the invasion began.

Overall, Russia's fossil fuel export revenue fell 8 per cent in August to 604 million euros a day, while export volumes declined 7 per cent.

India remained Russia's second-largest fossil fuel customer after China, importing 4.8 billion euros of Russian hydrocarbons during the month, of which crude oil accounted for 4.1 billion euros, or 87 per cent of its purchases. Indian imports of Russian crude nevertheless fell 24 per cent from July, after reaching record levels in the previous two months. Imports at the Jamnagar refinery fell 15 per cent, while Vadinar rose 5 per cent and Paradip increased 1 per cent, according to the report.

China was Russia's largest fossil fuel buyer in August, accounting for 8.4 billion euros, or 51 per cent of the revenue generated by its five largest customers. Seaborne crude imports into China rose 16 per cent month on month.

CREA is a research organisation that tracks Russian fossil fuel exports and the effects of sanctions. Its figures are based on trade and shipping data and are published monthly.