Russia Turns to India as Domestic Fuel Crisis Deepens Amid Refinery Attacks

Russia has been importing fuels from India as its refinery crisis deepens. A shipment of 42,000 tons of gasoline from Nayara Energy's Vadinar refinery arrived in Russia on August 5, according to data from Kpler. The Vadinar refinery is partly owned by Rosneft, which supplies the crude oil processed at the facility.

The US sanctions imposed last November disrupted shipments of crude oil from Rosneft to India. However, Indian fuel has started flowing into Russia through a complex route that involves Egypt and Oman. This development highlights the severity of Russia's domestic petrol imbalance and the impact of lower refinery runs on its traditional product trade flows.

Russia's refinery runs stood at 3.6 million barrels daily in July, which is over 30% lower than the seasonal average. The country has been struggling to meet its fuel demand due to refinery attacks and disruptions in crude oil supplies from Rosneft. As a result, Russia banned diesel exports earlier this year to secure more supply for the domestic market.

Oil export figures suggest that Russia's refinery runs are recovering, but at a slower pace than expected. The country shipped 3.71 million barrels per day in the four weeks through August 9, which is down from 3.5 million barrels daily a week earlier. The fuel crunch pain caused by the refinery attacks is sending ripples across markets.