Russian crude is finding its way to Western markets through Indian refineries, with countries including the EU, Australia, the US and New Zealand buying oil products worth 1 billion euros ($1.2 billion) in September.Refineries in India, Turkiye and Brunei shipped these products to sanctioned countries, with export values rising 43% since August, according to the Centre for Research on Energy and Clean Air (CREA).The EU was the biggest buyer of oil products from the three countries, importing shipments worth 667 million euros. Australia followed with 168 million euros, while the US bought products worth 154 million euros and New Zealand imported 19 million euros’ worth.CREA estimated that 295 million euros’ worth of the products exported had been refined from Russian crude.
Jamnagar refinery leads exports to the West
India’s Reliance Industries-operated Jamnagar refinery in Gujarat supplied six of the seven cargoes unloaded at European Union ports in September, despite the bloc’s ban on oil products refined from Russian crude, which took effect in January 2026.Jamnagar also accounted for the largest share of the group’s exports to the US, with shipments worth 122 million euros. Russian crude made up 32% of the refinery’s crude imports between July and September.Of the seven shipments unloaded at EU ports in September, Italy received three, Romania two, and Spain and Cyprus one each.The value of exports reported as destined for EU ports from refineries processing Russian crude rose 80% during the month. These included a 104,000-tonne cargo of gasoil, or diesel, from Jamnagar that was still on its way to Rotterdam.
EU ban on Russian crude products has a loophole
The EU banned imports of oil products refined from Russian crude in January 2026. However, the restrictions exempt net crude exporters. CREA said this leaves a loophole because a country can export more crude than it imports while still processing Russian-origin oil at its refineries.The research group has recommended applying the ban at the refinery level. Under its proposal, oil products from any refinery that has processed Russian crude in the previous six months would be prohibited, regardless of the declared origin of the finished product.This is a recommendation by CREA, an advocacy group, and not existing policy.
India’s Russian crude imports fall 13% in September
While exports of refined products to sanctioning countries rose, India’s imports of Russian crude fell 13% in September. This was the second consecutive monthly decline and the lowest level since April, CREA said.Imports dropped at all three of India’s largest importing refineries. Intake at Jamnagar fell 27% from August, while Indian Oil Corporation’s (IOC) Paradip refinery recorded a 21% decline. Nayara Energy’s Vadinar refinery saw imports fall 8%.“Despite the decline, Vadinar overtook Jamnagar as India’s largest importer of Russian crude.”Smaller facilities also recorded lower imports. The HMEL Mundra Oil Terminal reduced its intake by 74%, while the Kochi refinery saw a 32% month-on-month decline.IOC’s Mundra Oil Terminal was the exception, receiving 570,000 tonnes of Russian crude in September after importing none in August.“The main exception was the IOC Mundra Oil Terminal, which received 570 thousand tonnes of Russian crude in September after receiving none in August,” CREA said.
India spends 4.1 billion euros on Russian fossil fuels
Despite the monthly decline in crude purchases, India remained Russia’s second-largest buyer of fossil fuels in September, spending 4.1 billion euros on Russian hydrocarbons. China was the only country that bought more.“India was the second-largest buyer of Russian fossil fuels in September 2026, importing a total of 4.1 billion euros of Russian hydrocarbons. Crude oil constituted 88 per cent of India’s purchases, totalling 3.6 billion euros. Coal (309 million euros) and oil products (161 million euros) constituted the remainder of its monthly Russian imports,” CREA said.Since December 2022, India has accounted for 37% of Russia’s crude exports, compared with China’s 50%.
Why India turned to Russian oil
India was a marginal buyer of Russian oil before Russia’s 2022 invasion of Ukraine. Its purchases increased after Western buyers pulled back and Russia began selling crude at steep discounts.Urals crude averaged $90.7 a barrel in September but continued to trade $23 below Brent crude. The discount remained unchanged from August.The decline in India’s Russian crude imports was not driven by US pressure alone, according to analysts at Kpler. Tighter supplies and stronger competition from China for Russian oil also contributed to the fall in volumes.Kpler expects India’s Russian crude imports to remain between 1.8 million and 1.9 million barrels per day in October.
About the Author
