Ukraine’s Drone Campaign Forces Russia to Buy Gasoline From India
Ukraine’s Drone Campaign Forces Russia to Buy Gasoline From India Alex Kimani is a veteran finance writer, investor, engineer and researcher for Safehaven.com.
Russia hasstarted importingrefined fuel from India by sea in a bid to mitigate critical domestic fuel shortages triggered by sustained Ukrainian drone attacks on its energy infrastructure.
In an exclusive Reuters report, industry sources revealed that an initial shipment of at least 60,000 metric tons (510,000 barrels) of gasoline has been dispatched from India via two tankers destined for Russian ports.
Ukrainian drone strikes have knocked offline roughly 30% of Russia’s oil refining capacity, pushing domestic refining throughput to a 21-year low during peak summer demand.
With gasoline consumption spiking to at least 110,000 metric tons per day in the busy summer months, Moscow is scrambling to meet a deficit of ~25,000 tons (212,500 barrels) per day, according to Reuters.
Last week, the Russian parliament approvedurgent tax amendmentsoffering subsidies for fuel imports.
These subsidies are explicitly pegged to Indian delivery costs and port prices to make maritime imports economically viable.
The Kremlin plans to import 400,000 metric tons of gasoline monthly from India and various other countries.
Regional allies have also stepped up: Belarus tripled its gasoline rail deliveries to Russia to over 70,000 tons in the first half of June.
Unfortunately for Moscow, its land-based neighbors lack the spare capacity required to resolve the crisis on their own.
India has become an unlikely supplier to Russia’s fuel market.
After buying record volumes of discounted Russian crude, Indian refiners are now exporting gasoline back to Russia as domestic shortages worsen.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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