India Says No Direct Fuel Sales to Russia as Traders Ship Gasoline There

India's oil minister said on July 3 that Indian companies are not selling fuels directly to Russia. He added that it is possible Indian-origin refined fuel reaches Russia through traders. An initial shipment of at least 60,000 metric tons, or 510,000 barrels, of gasoline left India for Russian ports on two tankers, OilPrice.com reported.

Gasoline produced by Nayara Energy, in which Russia's Rosneft holds a 49 percent stake, has been sold to Russia via traders, sources with direct knowledge of the deals told Reuters. Ukrainian drone strikes have knocked offline an estimated 30 percent of Russia's oil refining capacity. Russian refining throughput has fallen to a two-decade low during peak summer demand.

Russian President Vladimir Putin acknowledged at the end of June that the country faces fuel shortages requiring further government intervention. Shortages that began in some regions in May have now reached Moscow after strikes last month disabled the Kapotnya refinery. Industry sources said the facility is unlikely to resume production before 2027 due to extensive structural damage.