India Denies Direct Fuel Exports to Russia, Cites Trader Sales

India's Oil Minister, Hardeep Singh Puri, has stated that Indian refiners are not directly exporting refined petroleum products to Russia. This comes amid reports that Russia has begun importing fuel from India by sea to mitigate shortages caused by Ukrainian drone attacks on its refineries. Industry sources indicated that an initial shipment of at least 60,000 metric tons of gasoline was dispatched from India via two tankers destined for Russian ports.

Puri clarified that while Indian companies are not directly selling fuels to Russia, it is "possible that Indian-origin refined fuel is sold to Russia via traders." Sources with direct knowledge confirmed that gasoline from Nayara Energy, in which Russia's Rosneft holds a 49% stake, has been sold to Russia through traders. This suggests that India-produced fuels are likely reaching Russia as Moscow grapples with a significant fuel supply crisis.

Ukraine's intensified drone strikes have reportedly taken offline an estimated 30% of Russia's oil refining capacity, leading to a two-decade low in refining throughput during peak summer demand. Russian President Vladimir Putin publicly acknowledged in late June that Russia is facing fuel shortages and a crisis requiring government intervention. Fuel shortages have extended to Moscow, with the Kapotnya refinery offline and unlikely to resume production before 2027 due to extensive damage.