A severe domestic refining deficit forced Russia to import a record 172,000 tonnes of refined petroleum products in August 2026. Nearly 70 percent of those shipments came from India. Analysis by the Centre for Research on Energy and Clean Air (CREA) revealed that August import volumes surged to more than seven times the previous monthly high recorded since the full-scale invasion of Ukraine. This made Russia a net gasoline importer during the month.
This unusual circular supply chain highlights the profound impact of sustained Ukrainian drone campaigns on Russian energy infrastructure. Crude oil originally exported from Russia is delivered to the Vadinar refinery in India-which is partly owned by Russia’s Rosneft-processed into motor fuel, and subsequently shipped back halfway around the world to Russian ports.
The Mechanics of the Circular Supply Chain
According to the CREA report, India supplied 70% of Russia’s oil product imports in August. This included 120,000 tonnes of gasoline valued at 78 million euros. All of the gasoline from India was loaded at the Vadinar refinery and sold by EU-sanctioned Nayara Energy to Rosneft. Rosneft maintains a 49.13% ownership stake in Nayara Energy.
During the first eight months of 2026, the Vadinar facility sourced 100% of its crude oil from Russia, compared to 81% for the entirety of 2025. “Russia is therefore paying a refinery that it partly owns to process its own crude into fuel it can no longer produce domestically, before shipping it back halfway around the world,” CREA stated in its monthly analysis.
Logistical complexities marked the return journey of the fuel. Each cargo of gasoline exported from Vadinar underwent ship-to-ship transfers off the coast of Egypt before being unloaded at Russia’s Arctic port of Beloe More. All participating vessels were sanctioned tankers, and four of the six ships had previously operated under false flags, according to the research group.
Impact of Ukrainian Drone Strikes on Refineries
Sustained Ukrainian drone attacks against Russian oil refineries and energy infrastructure have heavily impaired domestic fuel manufacturing, triggering regional shortages. Gasoline accounted for 74% of Russia’s total oil-product imports in August. This marked a drastic shift from an average of just 6% between 2023 and 2025.
In addition to Indian shipments, South Korea supplied 18,000 tonnes of oil products, mostly gasoil. Egypt exported 25,000 tonnes of diesel worth 16 million euros. Meanwhile, Russia’s seaborne oil-product exports dropped 21% by volume in August. Revenues from products unloaded at destination ports fell 32% from July to 78 million euros per day, hitting the lowest level recorded since the full-scale invasion of Ukraine.
Loading operations at Russian ports have fallen for three consecutive months, resting at less than half their August 2025 levels. Tuapse, formerly Russia’s fourth-largest oil-product export port, did not load a single cargo for the third consecutive month following ongoing drone strikes that began in May. Disruptions also affected crude exports through the Black Sea port of Novorossiysk, where loadings fell 58% month-on-month in August and halted entirely for nine consecutive days.
Broader Trade Patterns: China and India
Despite declining export volumes, Russia continued to benefit from elevated global energy prices. The average price of Russia’s Urals crude rose 23% in August to $69.90 a barrel, remaining well above the G7 and European Union price cap of $44.10.
India remained Russia’s second-largest fossil-fuel customer in August, trailing only China. New Delhi imported 4.8 billion euros worth of Russian hydrocarbons during the month, with crude oil representing 4.1 billion euros, or 87% of its total purchases. Total Indian imports of Russian crude decreased by 24% from July following record highs in the preceding two months. Drops were noted at the Jamnagar refinery, while volumes at Vadinar and Paradip saw minor adjustments.
China retained its spot as Russia’s top fossil-fuel customer. It accounted for 8.4 billion euros, or 51%, of the revenues generated by Moscow’s five largest buyers. Russian seaborne crude imports into China increased 16% month-on-month, standing 62% above figures from August 2025.
