Russia Seeks Additional Gasoline from India Amid Fuel Crisis
Russia‘s largest energy companies have approached Indian oil refineries for additional gasoline supplies after Ukrainian strikes disabled a significant share of Russia’s refining capacity, Reuters reported on July 15, citing sources.
The move marks an unusual reversal in the countries’ energy trade relationship, highlighting the extent of the disruption caused by the Ukrainian attacks. Moscow is witnessing its worst gasoline crisis, with nearly 40% of Russia‘s refining capacity unlikely to resume operations for at least two months, barring further attacks, according to one source familiar with the situation.
Indian Refineries Receive Russian Requests
Rosneft, Gazprom Neft, and Lukoil are among the companies that have contacted Indian partners, including both private and state-owned refineries, one source said. Any deliveries would be arranged through traders if agreements are reached. Sources at three Indian state-owned refineries said Russian companies had approached them seeking additional gasoline, but that they had no surplus volumes available for export.
Ship-to-Ship Transfers to Ensure Supplies
One source familiar with the situation said any further shipments from India could reach Russia through ship-to-ship transfers. Reuters reported in early July that traders had been selling Russia gasoline produced by the Indian refinery Nayara Energy, which is partly owned by Rosneft. The tanker Agni loaded 42,000 metric tons of gasoline at the Indian port of Vadinar between June 18 and 20, and carried out a ship-to-ship transfer of the cargo to the tanker Garnet near Egypt between July 6 and 7; the Garnet is expected to arrive in Russia around July 26.
Belarus Increases Gasoline Supplies
As previously reported, Belarus increased gasoline supplies to the Russian market to a record high in June. This move has helped alleviate some of the pressure on Russia‘s fuel supply chain.
Fuel Crisis Deepens
Crude processing volumes at Russian refineries have fallen to their lowest level in more than 21 years following a wave of Ukrainian attacks, deepening the domestic fuel shortage. In early July, Russian gasoline production fell to a level equivalent to only about 65% of average seasonal consumption after Ukrainian drone attacks forced major refineries offline.
Impact on Russian Population
Russia‘s fuel crisis, stemming from Ukrainian strikes on oil infrastructure, has brought the war home to more Russians than ever before, directly affecting an estimated 50 million people, or 35% of the population. On June 28, Russian President Vladimir Putin acknowledged for the first time that Russia was experiencing gasoline shortages following Ukrainian drone strikes on oil refineries.
Original Article: Russia seeking extra gasoline from one of its top oil buyers amid fuel crisis — Nv