• Russia has initiated seaborne gasoline imports from India (INDY) for the first time, as Ukrainian drone strikes cripple domestic refining capacity.
  • The move is backed by a subsidy framework advancing in the State Duma, linking subsidies to Indian pricing and shipping costs.
  • The imports underscore shifting energy trade flows, with India emerging as a key supplier to Russia amid ongoing sanctions.

Russia has started seaborne gasoline imports from India, according to two sources familiar with the matter, marking a significant shift in the country's fuel supply strategy. The imports are aimed at addressing a domestic gasoline shortfall caused by Ukrainian drone strikes on refineries, which have reduced Russia's refining capacity.

The development comes as a bill advances in the State Duma to extend subsidies for imported gasoline, based on Indian pricing and shipping costs. According to people familiar with the matter, the subsidy framework is designed to stabilize retail fuel prices and support the import program.

India has become a major supplier of refined products to Asia, including gasoline, since the war in Ukraine began. Its exports to Russia have grown as Western sanctions have reshaped global energy trade flows. The new imports represent a further deepening of energy cooperation between the two countries.

“The market is watching closely,” said a Moscow-based analyst who declined to be named. “If this becomes a recurring pattern, it could reshape supply dynamics across Eurasia.” The analyst added that the arrangement exposes Russia to price and supply volatility in Indian markets, but offers a buffer against domestic refinery outages.

Industry participants note that Russia's reliance on foreign refined products is unusual for a major oil producer. The country has historically been a net exporter of gasoline, but drone attacks have forced several refineries to cut output.

Efforts to secure alternative supply chains have been underway for weeks, with officials exploring options from Belarus and other neighboring countries. India emerged as a viable source due to its large refining capacity and competitive pricing.

“We are seeing a pragmatic shift,” said an energy trader based in Singapore. “Russia is using its financial muscle to plug a gap, even if it means importing from halfway around the world.”

The subsidy bill, if passed, would ensure that imported gasoline remains affordable for Russian consumers. However, the logistics of shipping gasoline from Indian ports to Russian markets remain untested, with potential delays and cost overruns.

A spokesperson for the Russian Energy Ministry did not respond to a request for comment. The Indian Ministry of Petroleum and Natural Gas declined to comment.

Correction: An earlier version of this article incorrectly stated that the subsidy bill had already been signed into law. It has not yet been approved.

Updated: The article has been updated to clarify the status of the subsidy bill.