Russia Imports Indian Fuel as Refinery Crisis Deepens

Russia has begun importing gasoline from India, according to Bloomberg, citing data from Kpler. The shipment of 42,000 tons of gasoline from India's Vadinar refinery arrived in Russia earlier this month. The Vadinar refinery, partly owned by Rosneft, processes crude oil from Russia. The shipments were halted last November following the United States sanctions on Russia's largest oil exporter.

The latest cargo was loaded in mid-June, transported via a Russian-flagged tanker, and then transferred to an Omani-flagged fuel carrier before arriving in Russia on August 5. This import of Indian fuel is significant, according to Kpler's lead analyst Sumit Ritolia, as it underscores the critical nature of Russia's refinery shortage and the impact on traditional trade flows.

Russian refinery output in July was reported at 3.6 million barrels daily, a substantial decline of over 30% compared to the seasonal average. However, signs of recovery are emerging. Russia's seaborne crude exports dipped to their lowest level since May last month, as higher refinery output brought barrels back into domestic processing.

Meanwhile, Ukrainian drone attacks disrupted loading at key ports. Russia's seaborne crude exports were 3.71 million barrels daily in the four weeks through August 9, according to Bloomberg's analysis of vessel-tracking data. This decline in exports has exacerbated supply issues, prompting Russia to ban diesel exports earlier this year to secure more supply for the domestic market.

This ban has intensified the supply tightening caused by refinery damages in the Middle East and the closure of the Strait of Hormuz, with the ban now set to continue until the end of the year.