Drone Strikes Push Russia to Import Petrol From India

Ukrainian refinery strikes cut Russian fuel output by up to 70%, forcing Moscow to import a record 1 million barrels of gasoline from India in two months.

Russia, one of the world's largest crude oil exporters, brought in seaborne gasoline at a record pace of roughly 125,000 barrels per day in August, equal to about 470,000 tonnes for the month. Indian refiners accounted for a large share of that total, shipping close to 1 million barrels of gasoline to Russia over the past two months, according to ship-tracking data cited by energy analytics firm Vortexa.

The reversal has an unusual backdrop: India, itself among the world's biggest oil importers, has become a key gasoline supplier to a country that ranks among the top holders of crude reserves globally. Vortexa said repeated Ukrainian drone strikes on Russian refineries have knocked out domestic fuel-making capacity, cutting output by as much as 70% and forcing Moscow to source petrol from abroad even as it keeps tight curbs on fuel sales at home.

Most of the Indian cargoes originated at the Vadinar refinery in Gujarat, run by Nayara Energy, a company half-owned by Russia's Rosneft. That link reflects a broader shift in India's crude sourcing since 2022, when Russian oil began displacing other suppliers in Indian refiners' import mix after European buyers pulled back.

India's Russian crude purchases have since climbed to unprecedented volumes, driven partly by tighter supply from the Gulf amid regional conflict. The country imported more than 2.6 million barrels per day of Russian crude in both June and July, up from about 1 million bpd in February, with Russian barrels making up over half of India's total crude imports across those two months. Some of the gasoline India sent to Russia may itself have been refined from Russian-origin crude.

India was not alone in filling the gap. Turkey and Morocco also supplied gasoline to Russia in August as the country's domestic shortfall widened. Moscow has responded by extending its blanket ban on gasoline exports, covering both producers and non-producers, through the end of January 2027, while a separate ban on diesel exports runs through September 1, 2026.

Sanctioned Ships and Dark Transfers

A significant share of the fuel reaching Russia is moving through opaque channels. Vortexa estimated that about 55%, or roughly 260,000 tonnes, of Russia's August gasoline imports arrived on sanctioned vessels. Every India-origin gasoline cargo received in August traveled on sanctioned ships and involved covert ship-to-ship transfers in the Mediterranean, the firm said. Across all of Russia's gasoline imports that month, roughly 40% moved through such ship-to-ship transfers, many carried out with vessels' automatic identification system signals switched off.

The damage to Russian refining capacity has been sustained rather than a one-off event. Vortexa tallied 32 attacks on Russian refineries across July and August, averaging one roughly every other day. Diesel has followed a different trajectory: Russia's seaborne diesel and gasoil exports stood at about 150,000 bpd through August 25, little changed from the prior month but 610,000 bpd below year-earlier levels and 81% under the five-year seasonal average, squeezed by the export ban, refinery damage and terminal disruptions. Vortexa expects Russia to keep importing some gasoline in the near term, given the country's historically lower ratio of gasoline output relative to diesel.

A Looming Tariff Threat

The trade is unfolding as the Trump administration advances the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which would let the US president impose tariffs of up to 100% on countries buying large volumes of Russian crude and gas. Under the bill, the US Trade Representative would identify the five largest importers of Russian energy every 180 days, after which the president would decide whether to apply tariffs, grant exemptions, or take no action.

Countries drawing less than 15% of their total energy needs from Russia, and actively cutting that reliance, could qualify for an exemption. The legislation would also add secondary sanctions on shipping firms, insurers and vessels tied to Russia's so-called shadow fleet. Based on current import patterns, the five largest buyers of Russian energy are likely to be China, India, Slovakia, Hungary and Azerbaijan. India was not a major buyer of Russian crude before the war in Ukraine; steep discounts after European buyers exited the market changed that, and its reliance on Russian oil has kept climbing since.

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