Key facts
- Russia has started importing gasoline from India.
- A 42,000-ton cargo from Nayara Energy's Vadinar refinery arrived in Russia on August 5.
- Russia's refinery runs in July were significantly lower than the seasonal average.
- The imports underscore the severity of Russia's domestic fuel imbalance.
- Russia previously banned diesel exports to ensure domestic supply, a ban extended to year-end.
Russia has begun importing gasoline from India, a development that underscores the severity of its domestic fuel supply issues stemming from reduced refinery operations. Data from Kpler indicates that a 42,000-ton cargo of gasoline from Nayara Energy's Vadinar refinery arrived in Russia earlier this month.
The Vadinar refinery, partly owned by Rosneft, had its shipments disrupted following U.S. sanctions on the Russian oil exporter. The recent gasoline shipment, loaded in mid-June, highlights the significant imbalance in Russia's domestic petrol market and the reshaping of its traditional product trade flows.
Estimates suggest Russia's refinery runs in July were over 30% lower than the seasonal average, standing at 3.6 million barrels daily. This reduction in domestic processing has led to a decrease in seaborne crude exports, as barrels are redirected for internal use. However, Ukrainian drone attacks have also impacted loading operations at key Russian ports.
The fuel crunch, exacerbated by refinery damages and geopolitical factors like the closure of the Strait of Hormuz, has led Russia to ban diesel exports until the end of the year to prioritize domestic supply.