Archive · 7 Sep 2026
Russia Buys Indian Petrol as Crude Trade Turns Full Circle
India usually buys crude oil from Russia and turns it into fuel.
Now some of that fuel, especially gasoline, is being sent back to Russia.
Russia needs more gasoline because attacks and refinery problems have reduced its domestic supply.
India sent 1.66 million barrels of gasoline to Russia in June and July.
Nayara Energy’s Vadinar refinery is one clear example of this trade.
Some fuel may have traveled through places such as Turkey, but shipping data cannot prove every connection.
Russia pays enough for imported gasoline to make these shipments possible.
However, India is not receiving cheaper Russian crude because the gasoline trade is small compared with the crude trade.
Recent Russian crude purchases by Indian refiners were around $1 above the Brent benchmark.
India exported 1.66 million barrels of gasoline to Russia in June and July, while Russia continued supplying India with crude.
Direct Indian gasoline shipments to Russia averaged 17,146 barrels per day in June and 37,255 barrels per day in July.
Ukrainian attacks and refinery outages have tightened Russia’s domestic gasoline supply, increasing its need for imports.
Nayara Energy’s Vadinar refinery sent three cargoes totaling 1 million barrels to Russia’s White Sea, although some onward links remain unconfirmed.
Russia’s gasoline purchases have not improved India’s crude pricing position, with recent Urals deals near a $1-a-barrel premium to Brent.
- Who
- Indian refiners, Russia, Nayara Energy’s Vadinar refinery, and Rosneft are central to the trade.
- What
- Indian refineries are supplying gasoline to Russia while continuing to receive large crude shipments from Russia.
- When
- Gasoline shipments were recorded in June and July, with related crude and product trade discussed through August.
- Where
- The trade involves India, Russia, the White Sea, Mersin, and Tangier.
- Why
- Ukrainian attacks and Russian refinery outages have tightened Russia’s gasoline supply, making imports commercially viable.
Trade Becomes a Useful Balancing Channel
Trade Offers Little Bargaining Power
Meaning of gasoline exports
Trade Becomes a Useful Balancing Channel
India’s gasoline shipments help address Russia’s supply shortage caused by refinery disruptions and provide Indian refiners with an outlet for products.
Trade Offers Little Bargaining Power
The reverse flow remains small compared with Russia’s crude deliveries to India, so it has not changed the broader pricing relationship.
Possible onward shipments
Trade Becomes a Useful Balancing Channel
Cargoes routed through Mersin and Tangier could indicate that more Indian fuel reached Russia than direct shipping records show.
Trade Offers Little Bargaining Power
Shipping data do not conclusively establish the origin or final destination of those cargoes.
Effect on crude prices
Trade Becomes a Useful Balancing Channel
The circular trade could appear to give India additional leverage because Russia needs imported gasoline.
Trade Offers Little Bargaining Power
Analyst Natalia Katona said the gasoline flows are below 1% of Russian crude deliveries to India on a daily-barrel basis, while Urals discounts have tightened.
- Gasoline sent to Russia
- 1.66 million barrels moved from India to Russia in June and July.
- Direct gasoline exports
- India’s shipments averaged 17,146 barrels per day in June and 37,255 barrels per day in July.
- Russian crude supply
- Russia supplied about 2.08 million barrels per day to India in August, around 45% of India’s total crude imports.
- Vadinar shipments
- Three cargoes totaling 1 million barrels reached Russia’s White Sea, according to analyst Natalia Katona.
- Vadinar ownership
- Nayara Energy is 49% owned by Rosneft, and its Vadinar refinery operates entirely on Russian crude.
- Russian gasoline import price
- Imported gasoline at about 105,000 roubles per tonne, or $1,220 per tonne, was described as competitive.
- Urals pricing
- Recent purchases by Indian refiners were concluded at around a $1-a-barrel premium to Brent.