Russia Imports Indian Gasoline to Cover Domestic Shortages — NRG-IA

Russia has begun importing gasoline from India by sea in an effort to alleviate domestic fuel shortages following disruptions to its refining capacity. Two industry sources told Reuters that at least 60,000 tons of gasoline have already been shipped from India to Russia, with another two tankers reportedly carrying cargoes of 30,000–40,000 tons each. For Moscow, importing gasoline from India holds greater significance than the initial shipment volumes suggest. Russia remains one of the world's largest producers and exporters of crude oil and refined products, but Ukrainian drone attacks on refineries and transport infrastructure have hit domestic supply right during the peak summer driving season. Reuters previously reported that Russia was preparing seaborne gasoline imports from Asia after damage and unscheduled shutdowns at several refineries triggered shortages in multiple regions. Authorities have attempted to mitigate the impact through export restrictions, purchases from neighboring states, and tax adjustments designed to make imports more financially viable for companies. Two tankers will not solve the domestic deficit The minimum of 60,000 tons shipped from India represents an emergency intervention rather than a structural solution. One of the sources cited by Reuters indicated that Russia could target total imports of approximately 400,000 tons of gasoline per month from various sources, including Belarus. Belarus has already increased rail fuel deliveries to Russia, but the available capacity of its neighbors is insufficient to fully cover the deficit resulting from shutdowns or reduced activity at Russian refineries. Seaborne imports from India thus expand Moscow's options, even though they involve longer distances, additional logistical costs, and reliance on the availability of refined products in the Asian market. The Russian Energy Ministry and India's Ministry of Petroleum did not immediately respond to Reuters' requests for comment regarding volumes, contracts, or the exact delivery schedule. Consequently, the plan to import 400,000 tons monthly should be treated as information attributed to industry sources rather than an official target confirmed by the governments of either country. Refinery attacks shift the problem from exports to the domestic market Russia has already restricted exports of gasoline and jet fuel to retain more volume for the domestic market. In the final week of June, gasoline production was estimated at around 90,000 tons per day, approximately 25% below the level of the same period last year, according to industry sources cited by Reuters. The pressure has manifested in several regions through rationing, queues at filling stations, and rapid price increases. In Sevastopol, the Russian statistics agency Rosstat reported an approximate 30% surge in gasoline prices in a single week, amid acute local supply issues. Vladimir Putin has publicly acknowledged the difficulties, stating that gasoline reserves are being used to support the domestic market. The Kremlin indicated that July production should exceed June levels, but this scenario depends on the refineries' ability to resume operations and the prevention of new disruptions to infrastructure. India becomes a refined product supplier for Russian crude Gasoline imports from India create a notable trade reversal. India has become one of the largest buyers of Russian crude oil since 2022, and in June, Indian oil imports from Russia hit a record high, according to preliminary LSEG and Kpler data reported by Reuters. Russia is thus supplying crude oil to Indian refineries, while a portion of the Russian market ends up being temporarily supported by gasoline produced in India. This is not a structural energy dependence between the two nations, but rather a commercial response to an internal dysfunction in the Russian refining and distribution chain. The situation highlights the difference between crude oil availability and the actual capacity to process oil into fuels for the domestic market. A nation can remain a major exporter of crude oil while simultaneously being forced to import gasoline when its refineries, logistics, or regional distribution can no longer meet demand. Imports ease pressure but do not eliminate risk Shipments from India can help stabilize the market locally, particularly in regions where maritime and rail access allows for rapid gasoline redistribution. However, the impact remains limited by available volumes, transport costs, and the ongoing threat of attacks on Russian infrastructure. For the international market, Russian gasoline imports do not yet represent a supply shock comparable to a major halt in Russian diesel exports. However, they send an important signal: Russia's refining issues have surpassed the scope of traditional domestic measures—such as export bans, reserve drawdowns, and tax adjustments—and now require refined products sourced from abroad.