How India's Refineries Continue To Supply Fuel To The West Amid Russian Oil Sanctions

Fuel exports to Western countries from refineries processing Russian crude rose 43% month-on-month to 1 billion euros ($1.2 billion) in September, according to the Centre for Research on Energy and Clean Air (CREA), highlighting a regulatory gap in Western restrictions on Moscow.

India, Turkiye and Brunei accounted for the shipments, with the European Union importing oil products worth 667 million euros. Australia imported 168 million euros, the US 154 million euros and New Zealand 19 million euros. CREA estimated that products worth 295 million euros were refined from Russian crude.

Reliance Industries' Jamnagar refinery in Gujarat played a significant role, supplying six of the seven cargoes unloaded at EU ports during the month.

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The refinery also accounted for the largest US-bound exports among the facilities covered, worth 122 million euros. Russian crude accounted for 32% of Jamnagar's crude oil imports between July and September.

The EU prohibited imports of oil products refined from Russian crude in January 2026. However, an exemption for net crude exporters has left room for products refined in countries such as India to reach European markets.

CREA has recommended extending the restriction to refineries that have processed Russian crude in the preceding six months. This remains the group's recommendation and has not been adopted as EU policy.

India's Russian crude imports fell 13% in September, marking a second consecutive monthly decline and the lowest level since April.

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Imports dropped 27% at Jamnagar, 21% at Indian Oil Corporation's Paradip refinery and 8% at Nayara Energy's Vadinar facility. Vadinar overtook Jamnagar as India's largest importer of Russian crude.

Despite the decline, India remained Russia's second-largest fossil fuel buyer, purchasing 4.1 billion euros of Russian hydrocarbons in September. Crude oil accounted for 3.6 billion euros, or 88% of the total, while coal and oil products made up the remainder.

Tighter supply, stronger competition from China and Western pressure were among the factors cited for the decline in Indian purchases. Kpler expects India's Russian oil imports to remain at around 1.8 million to 1.9 million barrels per day in October.

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