Reverse oil flow: India supplies gasoline to Russia - why it matters

Published 10 July 2026 · india

India's imports of Russian crude reached a record high in June. (file PTI photo of Russian oil tanker) Agni Why is Russia importing gasoline? India’s

India's imports of Russian crude reached a record high in June. (file PTI photo of Russian oil tanker) Agni Why is Russia importing gasoline? India’s Ability To Supply To Russia Russia is one of the few countries in the world that stands out for being one of the biggest exporters of crude oil and also among the largest refiners. But, four years after Moscow’s war with Ukraine began, reports have emerged suggesting that India is now supplying gasoline to Russia.According to a Reuters report, traders have sold gasoline produced by Nayara Energy. Incidentally, Nayara is a Russia-backed refinery in India. The refinery has processed only Russian crude since the EU sanctions imposed in July 2025 and relies on international traders for both crude imports and refined product exports. Last week, Reuters reported that around 60,000 metric ⁠tons of gasoline had been dispatched from India to Russia.However, Oil minister Hardeep Singh Puri has said that Indian companies are not directly selling gasoline to Russia. “Because of damage to its refineries due to the war, Russia has probably started buying gasoline from India. As far as I know, it has not been bought from any of our companies. It is the purchase of Indian-origin products from a trader,” minister said.According to Sourav Mitra, Partner - Oil & Gas, Grant Thornton Bharat, industry reviews of a tanker invoice showed the vesselloading gasoline at Vadinar for Fujairah on June 20; however, LSEG vessel-tracking data later showed it passing Fujairah and transiting the Suez Canal northbound, illustrating the opaque nature of the trading route.The Ukraine war which incidentally led to Russia becoming the biggest crude oil supplier to India, has also crippled Moscow’s refining capacity very badly.The refining capacity of one Russia has taken a big hit due to persistent strikes and drone attacks from Ukraine.

Estimates suggest that over 40% of Russia’s refining capabilities have been impacted, compelling Moscow to increase exports of crude oil and step up imports of gasoline to meet domestic demand.Sourav Mitra, Partner - Oil & Gas, Grant Thornton Bharat cites estimates indicating that Russian fuel production in June 2026 was significantly lower than a year earlier.“The attacks have had a material impact on Russia's downstream sector. Russian refinery throughput fell to its lowest level since 2009, with average refinery runs declining to about 4.69 million b/d by April 2026 amid repeated strikes on refining infrastructure,” he tells TOI.What this has led to is a mismatch between Russia’s crude oil production and the country's ability to produce refined petroleum products, particularly gasoline. Gasoline production has declined by approximately 25% year-on-year.“Given the peak summer demand, Russia is facing a persistent structural supply deficit. Consequently, about 78 of the 83 Russian regions have reported gasoline shortages or supply disruptions. Against this backdrop, Russia has imposed temporary restrictions on gasoline exports to prioritise domestic fuel availability and has begun seeking imports to address supply shortages,” he says.Nikhil Dubey, Lead analyst at Kpler tells TOI that around 45% of Russia's refining capacity, equivalent to approximately 3.3 mbd, was taken offline in June due to Ukraine's attacks.He adds that the key issue is not only the refining capacity that has been hit, but also the loss of secondary conversion capacity.Why are these facilities important? They play a critical role in converting intermediate products into marketable transportation fuels such as gasoline and diesel.“Compared with crude distillation units, these processing units are far more complex. Restoring them can take significantly longer because replacement equipment typically involves lengthy manufacturing and delivery lead times,” says Dubey.This explains why Russia has been able to continue exporting products such as naphtha and fuel oil, even as domestic supplies of gasoline and diesel have come under greater pressure.“The same trend also helps explain why India's imports of Russian crude reached a record high in June.