New Delhi: As difficulties with Ukraine’s fuel supplies continue to intensify with attacks on Russian oil refineries, Russia has begun to import petrol from India. The import of the petrol from Russia is the first occasion of petrol imports from India, reflecting the gravity of the petrol shortage.
The first shipment of Indian petrol reportedly arrived in Russia on August 5. Kpler, a data provider for commodity analytics, indicated the fuel was being provided by Indian refinery Nayara Energy, which is connected with the Russian oil producer Rosneft.
Russia has a significant oil-refining sector, and typically has sufficient oil processing capacity to meet domestic demand. But reiteraed Ukrainian drone attacks have begun to impair production. A number of major facilities have been damaged or temporarily closed, thereby curtailing the supply of fuel within the country.
It has grown serious enough that Russian energy companies are now seeking to find other sources overseas. Indian refineries are one of the few refineries approached as they have huge refining capability and act as important players in the international fuel market. Russian energy firms were also looking for additional supplies of petrol from Indian refiners as a major portion of the Russian refining was blocked by the attacks, Reuters had reported earlier.
This is significant as it requires a long sea journey to transport petrol from India to Russia. Such a far out supplier indicates that Moscow is under considerable pressure to maintain its fuel market supply chain. Have also been reports of shortages and fuel control in some areas in Russia.
The development underscores the need for India to develop its huge refinery business. Indian refinery companies take crude oil and turn it into petrol, diesel and other products which can be exported to international markets.
The new development also reflects the impact of the Russia-Ukraine war on the energy markets not on the battlefield. In an attempt to limit Russia’s earning power from energy exports and its use of the war machine, Ukraine has progressively struck Russia’s energy facilities.
Refinery disruptions could be a further challenge to Russia’s energy system as it is forced to rely on imported fuel more than ever before.
