Russia has overtaken the United Arab Emirates as India's top naphtha supplier in the past year, as Indian refiners capitalize on discounted Russian shipments, Reuters reported on March 20, citing preliminary ship-tracking data.
Russia has redirected fuel exports to Asia following Europe's ban on Russian oil in response to its 2022 invasion of Ukraine. Oil and gas remain the backbone of Russia’s economy and its main source of export revenue that helps sustain its ongoing military aggression against Ukraine.
According to data from OilX and Kpler cited by Reuters, India imported approximately 3 million tons of naphtha from April 2024 to March 2025, with Russia supplying more than half – up from just 14-16% the previous year.
India, the world's third-largest importer and consumer of oil, has relied on cheaper Russian oil to lower its import costs.
Two unnamed trade sources told Reuters that Russian oil was priced $14-15 per ton lower than Middle Eastern crude this week.
Ship monitoring data indicates that oil for the Indian refineries of HPCL Mittal Energy Ltd (HMEL) and Reliance Industries was supplied from Russia’s Ust-Luga, Sheskharis, and Novorossiysk ports to the West Indian ports of Mundra, Hazira, and Sikka.
The UAE's share of India’s naphtha imports – mainly supplied by Abu Dhabi National Oil Co – fell to just over 20%, nearly half of its level in the same period in 2023-2024, data showed.
Ukrainian drones regularly attack Russia's oil infrastructure to undermine its ability to finance the war against Ukraine. Most recently, on March 19, Ukrainian drones attacked the Kavkaz oil pumping station in Russia's Krasnodar Krai.
The Trump administration recently tightened sanctions on Russia's oil and gas industry, letting lapse an exemption that allowed Russian banks to use U.S. payment systems for energy transactions.
At the same time, amid Trump’s attempts to set up a quick ceasefire between Russia and Ukraine, Moscow can get sanctions relief, Ihor Burakovsky, head of the board at the Institute for Economic Research and Policy Consulting, told the Kyiv Independent.
Yana Prots
(Updated: )
