Reuters: Russia asks India to boost gasoline deliveries

Leading Russian energy companies have approached Indian refiners seeking additional gasoline supplies after Ukrainian strikes disabled a substantial share of Russia's refining capacity, Reuters reports, citing sources familiar with the matter.

India remains the largest purchaser of Russian seaborne crude oil, making Moscow's efforts to secure Indian gasoline an unusual reversal in the two countries' energy trade relationship and underscoring the scale of the disruption caused by Ukrainian attacks. Russia is currently facing its most severe gasoline shortage in years.

According to one source familiar with the situation, at least one cargo of Indian gasoline has already been shipped to Russia, with additional deliveries expected. The source added that nearly 40% of Russia's refining capacity is unlikely to resume operations for at least two months if further attacks are avoided.

Rosneft, Gazprom Neft and Lukoil are among the Russian companies that have contacted Indian counterparts, including both private and state-owned refiners, one source noted, adding that any transactions would likely be arranged through traders rather than directly between companies.

Officials at three Indian state-run refiners said Russian firms had requested additional gasoline supplies but that they currently have no surplus volumes available for export. The sources requested anonymity due to the sensitivity of the discussions.

Major Indian refiners, including Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp, along with the three Russian energy companies and Russia's Energy Ministry, did not respond to Reuters requests for comment.

Indian Oil Minister Hardeep Singh Puri said earlier this month that Indian companies were not directly supplying fuel to Russia, although he acknowledged that Russian buyers could acquire Indian-origin products through trading intermediaries.

One source familiar with the negotiations indicated that any future shipments from India could be delivered to Russia through ship-to-ship transfers. The source added that Russia could also seek diesel imports should additional refining facilities come under attack, although current diesel supplies remain sufficient.

Reuters reported earlier this month that traders had sold gasoline produced by Indian refiner Nayara Energy, which is partly owned by Rosneft, to Russia.

According to shipping analytics firm Kpler, the tanker Agni loaded 42,000 metric tonnes of gasoline at Nayara's Vadinar port between June 18 and June 20 before transferring the cargo to the vessel Garnet near Egypt's Damietta Light between July 6 and July 7 through a ship-to-ship operation. Kpler estimates that Garnet is due to arrive at Russia's Vitino port around July 26.

Shipping sources also reported that another tanker, Varg, loaded gasoline at Vadinar and headed toward the Suez region, where the cargo is expected to be transferred to another vessel off Egypt for onward transport to Russia.

Nayara denied supplying fuel to Russian companies.

Nayara told Reuters it “has neither sold nor has any plans to sell fuel to Russian companies."

"Nayara Energy remains committed to serving the Indian ⁠market and ​meeting the demand for fuels across the length and breadth of India," it added.

"As the country’s largest private sector fuel retailer, our only priority is to ensure optimum supplies to over 7,000 stations and other channels including bulk customers."

By Bakhtiyar Abbasov