Thursday, August 13, 2026

From Russia to India: How Refinery Strikes Forced Moscow to Buy Gasoline from Nayara Energy

Russia had to undertake the uncharacteristic move in terms of its energy trading policy of buying gasoline from India to help ease the growing shortage of fuels in Russia. This move indicates the disruption caused to Russia’s oil industry by attacks in Ukraine and also illustrates the complicated nature of the energy relationship between Russia and India.


India’s first consignment of gasoline arrived in Russia in early August 2026, where 42,000 tonnes of fuels are believed to have been delivered by Nayara Energy, the Indian company that owns the Vadinar refinery located in Gujarat. It is indicated that the shipment has taken a circuitous route involving Egypt to reach Russia.


475.1) A Fuel Crisis at Home

Russia is a huge producer of oil, and hence, the decision by the country to import gas is quite an important development. It is not due to a lack of crude oil but the inability to refine it as a result of constant drone attacks from Ukraine. In the past few weeks, there have been attacks on various refineries such as the Orsk refinery and Gazprom Neftekhim Salavat plant.

The Orsk refinery, which produces about 5.76 million tonnes of crude oil annually, has closed down operations following drone attacks carried out on August 11. Repairs will be difficult since sanctions have made the process hard due to lack of spare parts.

Overall, the impact has been quite great. There were previous estimates that close to 40 percent of Russia's refinery capacity had been affected in the midst of all this, leading to restrictions of gas exports by Moscow.


475.2) Why India—and Why Nayara?

However, the selection of India bears the mark of great irony since Russia has always been one of the biggest suppliers of crude oil to India, while India has steadily become a big producer of refined petroleum products. Besides, Nayara Energy Vadinar refinery has a close connection with the oil business of Russia since the Russian oil company Rosneft owns 49% of its shares.

But the commercial path is a bit complicated since it cannot be seen as a simple government-to-government deal. It is reported that there have been traders who sell the gasoline produced by Nayara to Russia. Indian Oil Minister Hardeep Singh Puri stated that the Indian companies do not sell any fuel directly to Russia, though the Russians can buy fuel from traders.

This method has gained particular importance in light of sanctions and restrictions that complicate the international business activities of Nayara.


475.3) A Symbol of a Changing Energy Map

Russia's acquisition of Indian gasoline is a testament to how quickly the flow of energy globally changes with the disruption of the refining processes. Traditionally, Russia is a net exporter of oil products, but the ongoing situation has made Russia an urgent importer of oil from other countries.

At the same time, the acquisition is also a proof of the increasing interdependence of the two nations. India has become a significant consumer of Russian discounted oil, while companies affiliated with Russia have a considerable stake in India's refineries. Thus, gasoline trade becomes an odd twist in the story since Russian oil can now be refined in India and brought back to Russia as oil products.

Indian gasoline will not resolve the underlying issue for Moscow on its own. However, it can serve as a temporary solution until repairs are completed at the refineries. On the other hand, India will be able to prove itself as a versatile refining and trading partner in the turbulent world of energy.

Overall, the decision of Russia to buy gasoline from India is more than just a unique case of trade. It is a sign that even one of the major producers of oil can find itself in trouble when attacked through its refining sector. With the ongoing change of energy routes, the route of Indian gasoline to Russian gas stations might become a landmark of geopolitics.






Team Yuva Aaveg-

Adarsh Tiwari

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From Russia to India: How Refinery Strikes Forced Moscow to Buy Gasoline from Nayara Energy

Russia had to undertake the uncharacteristic move in terms of its energy trading policy of buying gasoline from India to help ease the growi...