Decoding Russia’s reliance on Indian petroleum products, Pg7

Key Highlights:

• Russia has begun importing refined petroleum products from India for the first time in significant quantities since the Russia-Ukraine war began in February 2022.
• Indian refiners supplied approximately one million barrels of petroleum products to Russia over the last two months.
• This shift is primarily due to consistent Ukrainian attacks on Russia’s oil refining infrastructure, leading to domestic shortages.
• India, which ranks fourth globally in oil-refining capacity, is utilizing this demand to export refined products, mainly from private refineries.

Detailed Insights:

• Historically, Russia's import of petroleum products from India was negligible, accounting for less than one percent of India’s petroleum exports.
• India remains heavily dependent on Russia for crude oil imports, with one-fourth of its petroleum imports since January 2022 originating from Russia.
• Despite U.S. President Donald Trump imposing additional tariffs on India in October 2025 for buying Russian crude, imports resumed after a temporary reduction.
• The U.S. and Israel's war with Iran in February led to a U-turn in the U.S. stance, tacitly encouraging Russian crude supplies to counter Iran’s blockade in the Strait of Hormuz.
• Russia's Deputy Prime Minister Alexander Novak stated in July that the country would import oil products to stabilize its domestic market.
• Ukrainian attacks included at least 17 strikes on 16 different oil refineries and 8 attacks on oil depots and pumping stations in July.
• Russia's refinery crude throughput decreased from about 5.18 million barrels per day in Q1 2026 to approximately 3.88 million barrels per day in Q3 2026.
• This reduction in refining capacity has also led to a surge in Russia's crude exports, as higher volumes of crude are diverted to the export market.
• The increased exports of refined petroleum products to Russia are expected to help India ease pressure on its foreign exchange reserves.

Key Concepts Involved:

• Petroleum Products: Refined substances derived from crude oil, such as gasoline, diesel, and jet fuel.
• Crude Oil: Unprocessed petroleum extracted from the earth, serving as the raw material for refineries.
• Refinery Throughput: The amount of crude oil processed by an oil refinery over a specific period.
• Strait of Hormuz: A critical maritime chokepoint connecting the Persian Gulf to the Gulf of Oman, vital for global oil trade.