Russia Turns to India for Petrol as Ukraine Strikes Cripple Refineries; More Fuel Shipments Likely

New Delhi: Russia has approached Indian refiners for more fuel supply following repeated Ukrainian strikes that badly damaged its refining equipment, indicating an unexpected change in the two countries' energy commerce. 

According to Reuters, some of Russia's largest energy businesses have approached both private and state-owned Indian refineries for additional gasoline supplies. The action comes as Moscow is experiencing its worst gasoline crisis, with Ukrainian drone and missile attacks taking off a substantial percentage of the country's refining capacity.

India is currently the major importer of Russian seaborne crude oil. However, Russia's request for Indian petrol is an unusual turnaround in the energy partnership, highlighting the severity of the damage caused by the strikes on its refineries.

Russian Oil Giants Reach Out to Indian Refiners

According to sources familiar with the matter, at least one cargo of Indian petrol has already sailed to Russia, with additional shipments expected if supply arrangements are finalised. According to one source, approximately 40% of Russia's refining capacity is unlikely to resume operations for at least two months, assuming no new strikes. 

Rosneft, Gazprom Neft, and Lukoil are among the Russian corporations said to have approached Indian refiners. The conversations have included both commercial and government-owned refineries in India. If an agreement is achieved, the fuel is expected to be delivered via foreign merchants rather than direct sales.

Despite receiving requests from Russian enterprises, sources at three Indian state-run refineries said they do not currently have surplus fuel available for export. 

Earlier this month, Union Petroleum Minister Hardeep Singh Puri stated that Indian companies did not directly supply fuel to Russia. However, he stated that Russia may obtain Indian-origin petroleum from international traders.

Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation did not comment so far. Russia's Energy Ministry, along with Rosneft, Gazprom Neft and Lukoil, also did not respond.

Ship-to-Ship Transfers May Drive Future Supplies

According to sources, future supplies from India could reach Russia via ship-to-ship exchanges at sea. They noted that, while Russia is now focused on securing gasoline supply, it may pursue diesel imports if further Ukrainian strikes destroy significant refining capacity. Currently, the country has ample diesel supplies.

Earlier this month merchants sold petrol produced by Nayara Energy, which is partly owned by Rosneft, to Russia, as per reports. 

According to ship tracking company Kpler, the tanker Agni loaded around 42,000 metric tons of petrol from Nayara Energy's Vadinar port between June 18 and June 20. Between July 6 and 7, the cargo was moved to the MV Garnet at Damietta Light off Egypt's coast via a ship-to-ship operation. Kpler stated that the Garnet is likely to arrive at Russia's Vitino port around July 26.

According to shipping sources, another tanker, Varg, has filled with petrol at Nayara's Vadinar port and is on its way to the Suez region. The cargo is likely to be moved to another vessel off Egypt before continuing on its voyage to Russia.

Nayara Energy said it has "neither sold nor has any plans to sell fuel to Russian companies."

The company stated that it is still committed to serving the Indian market and providing fuel demand throughout the country.

"As the country's largest private sector fuel retailer, our only priority is to ensure optimum supplies to over 7,000 stations and other channels including bulk customers," the company said.