Russia is importing nearly 270,000 metric tonnes of refined fuel from Asia this month, using ship-to-ship transfers to bring in supplies as repeated Ukrainian attacks on its oil refineries reduce domestic fuel production, according to preliminary shipping data and trade sources cited by Reuters.The imports mark a sharp shift for Russia, which is normally a major net exporter of refined petroleum products. Persistent Ukrainian strikes on Russian energy infrastructure in recent months have disrupted refinery operations and contributed to fuel shortages across the country.About one-third of the nearly 270,000 tonnes of refined fuel headed to Russia in August originated from India, while the remainder was loaded off the coasts of countries including South Korea and Malaysia, according to the shipping data and sources.
India accounts for a third of Russia’s August fuel imports
The shipments are being arranged through ship-to-ship transfers, a method that can make it harder to trace the original source and route of the fuel. The sources told Reuters that the transfers were likely being used to obscure the cargoes’ origins because trade with Russia can expose companies and vessels to Western sanctions.The shipping data showed no comparable fuel shipments arriving in Russia in July.Two tankers carrying refined products are expected to reach Russia’s Far East this week, according to data from shiptrackers Vortexa and Kpler and trade sources.One tanker is carrying at least 40,000 tonnes of jet fuel loaded near Malaysia’s Johor Strait through a ship-to-ship transfer. One trade source said the cargo originated in India.Another tanker loaded nearly 30,000 tonnes of gasoline through a ship-to-ship transfer off Yeosu in South Korea in early August, according to Kpler data and sources.Nearly 30,000 tonnes of refined fuel loaded in late July were also shipped to Russia from South Korea, Reuters reported.Japan, meanwhile, has banned jet fuel exports to Russia, including supplies routed through third countries or transferred between vessels at sea, in coordination with G7 countries and other partners.
Russia tightens export curbs as domestic shortages worsen
Moscow has responded to the domestic supply crunch by restricting its own fuel exports.Russia banned gasoline exports in April, followed by a ban on jet fuel exports in June and diesel exports in early July. It has since extended gasoline and diesel export restrictions until January next year in an effort to shore up domestic supplies.The need to import fuel is particularly notable because Russia has traditionally exported large volumes of refined petroleum products. The latest imports indicate the extent to which attacks on its refining infrastructure have begun to affect the domestic fuel market.Ukraine has repeatedly targeted Russian energy facilities during the war, seeking to disrupt one of Moscow’s key sources of revenue as well as its ability to supply fuel to its military and domestic economy.
India’s growing role in Russia’s energy trade
The August fuel shipments come as India’s energy relationship with Russia remains significant, particularly in crude oil.India’s imports of Russian crude reached a record share of 50.83% of its total crude imports in July, equivalent to around 2.47 million barrels per day, according to trade data cited by Reuters.Indian refiners’ Russian crude purchases were 62.4% higher than a year earlier, although they fell 4.8% from June’s record level.Russia accounted for about 43.25% of India’s crude imports during April-July, averaging more than 2 million barrels per day, according to the same data. The share was about 37% during the corresponding period a year earlier.The increase has come despite pressure on Indian refiners to reduce their purchases of Russian crude.India’s buying had slowed earlier this year as refiners sought to avoid higher US tariffs while New Delhi negotiated a trade agreement with Washington. However, disruptions to Middle Eastern supplies linked to the Iran war encouraged Indian refiners to continue sourcing Russian crude.India depends on imports for more than 90% of its crude oil requirements, making the country particularly sensitive to changes in global oil flows.The latest refined-fuel shipments show another dimension of India’s role in the Russia-linked energy trade: while India remains one of Russia’s biggest crude customers, fuel processed or sourced through Asia is now also finding its way back towards Russia as Moscow struggles with shortages at home.However, the growing energy trade faces geopolitical risks. A US Senate measure passed this month proposes 100% tariffs on buyers of Russian oil, although the legislation still requires approval from the House of Representatives.For Moscow, the immediate challenge is keeping its domestic fuel market supplied as refinery disruptions continue.For Asian traders and suppliers, the growing flows also highlight the increasingly complicated routes through which Russian energy is moving despite Western sanctions and trade restrictions.
