- India is exporting over 60,000 tonnes of petrol to Russia as Ukrainian strikes disrupt Russian refineries.
- Russia is sending more crude to India while importing fuel to ease domestic shortages.
- The trade highlights growing energy ties between the two countries.
Over 60,000 metric tonnes of gasoline have been sent from India to Russia, as first reported by Reuters on Wednesday, 1 June. This follows an ongoing fuel shortage in Russia, driven by Ukrainian strikes on Russian oil refineries.
According to the report, at least two tankers carrying 30,000 and 40,000 tonnes of gasoline, respectively, are being transmitted from India. Earlier this week, the Kremlin confirmed that Russia’s in negotiations with multiple countries – including Kazakhstan and neighbouring Belarus – to import gasoline.
Last month, the Ukrainian defence ministry revealed that the eastern European country had hit 11 Russian oil refineries, alongside fuel logistics facilities. Just yesterday, Ukrainian President Volodymyr Zelensky announced that Ukraine had made its second strike on an oil refinery in Ufa.
Russian gasoline prices jumped 9.8% in the last six months, with a record single-week climb of 3% in June. The impact has been particularly stark on the disputed region of Crimea, underscored by Russian President Vladimir Putin openly admitting that only a “few days’ supply” was left in the territory, during a televised interview on Sunday.
Demand for fuel is particularly high in summer due to increased travel. Russian gasoline consumption surpasses a daily level of 110,000 tonnes in these months.
“We are currently seeing a certain shortage,” Putin said, noting that “it’s not critical,” and expressing confidence that more petrol would cross Russian borders soon.
Russia, home to the world’s largest gas reserves, is the second biggest producer of natural gas globally. In fact, its supply is so significant that the Russian invasion of Ukraine in 2022 – and the subsequent European sanctions – triggered a continent-wide energy crisis in Europe. By 2025, Russia’s liquefied natural gas (LNG) exports to Europe, formerly its largest export market for LNG, fell by 44%, with the European Union (EU) committing to cutting them completely by 2027.
This turned attention to oil, and Russia supplying discounted oil and gas to Asian markets.
India is one of the biggest importers of oil globally. Its imports of Russian oil reached a record high at 2.70 million barrels per day last month.
While the surge in Indian demand is driven largely by the global energy crisis, stemming from the effective closure of the Strait of Hormuz, Russia’s decision to export more comes down to its reliance on Asian markets for exports, alongside its domestic oil infrastructure crumbling.
According to an analysis by Carnegie Russia Eurasia Centre, Russia normally has refining capability of 327 million tonnes of oil annually, yet Ukrainian attacks had halted up to 38% of that capacity by 2025. Recent attacks have ensured the major Moscow oil refinery won’t be in production for at least the next six months.
Russia is exporting oil that can’t currently be processed on Russian soil to India, and importing gasoline in return.
Russia and India’s ongoing energy partnership has drawn attention in recent months, particularly as India signed a free trade agreement (FTA) with the European Union (EU) early this year and is in talks for a trade deal with the US.
