Will Russian oil find its way to the West? Fuel exports by Indian refiners to countries sanctioning Moscow rose by 43%

Refineries in India, Turkey and Brunei shipped 1 billion euros ($1.2 billion) worth of oil products to countries imposing sanctions on Russia in September, up 43% from August, the Center for Energy and Clean Air Research (CREA) reported, citing PTI news agency.

Reliance Industries Ltd’s Jamnagar refinery in Gujarat accounted for six of the seven cargoes unloaded at European Union ports during the month, despite the bloc’s ban on importing petroleum products refined from Russian crude, the report said.

The findings come as India remains one of the biggest buyers of Russian fossil fuels following Moscow’s invasion of Ukraine in February 2022, even as Western restrictions seek to limit Russia’s energy income.

The EU has the largest share of oil product exports

In September, the European Union received 667 million euros worth of oil products from refineries covered by the CREA report. Australia imported €168 million, while the United States received €154 million and New Zealand €19 million.

CREA estimates that 295 million euros worth of exported products were refined from Russian crude oil.

Jamnagar also accounted for the largest share of the group’s exports to the US with shipments worth €122 million. According to the report, Russian crude accounted for 32% of the refinery’s crude imports from July to September.

Of the EU destinations, Italy received three out of seven shipments, Romania two shipments, and Spain and Cyprus one each.

The value of exports from refineries processing Russian crude reported as destined for EU ports rose by 80% month-on-month, the report said.

This included 104,000 tonnes of gas oil or diesel cargo from Jamnagar still en route to Rotterdam.

EU ban faces scrutiny over Russia’s crude legality

The European Union has banned the import of petroleum products refined from Russian oil in January 2026.

But the rules exempt net oil exporters, an exemption that CREA says leaves room for oil of Russian origin to enter global supply chains through refining in third countries.

According to the report, the country’s status as a net oil exporter does not prevent its refineries from processing Russian oil and subsequently exporting the resulting products.

CREA recommended extending the restrictions to the refinery level by banning the import of products from any refinery that processed Russian crude in the previous six months, regardless of the declared origin of the finished product.

The proposal is a recommendation of a research organization and does not represent adopted EU policy.

Russian oil imports to India have been falling for the second consecutive month

Russian crude oil imports to India fell 13% in September, the second straight monthly decline and the lowest level since April, CREA said.

Income fell at all three of India’s top importing refiners. According to the report, Reliance Industries’ Jamnagar refinery saw a 27% decline, Indian Oil Corporation’s Paradip refinery saw a 21% decline and Nayara Energy’s Vadinar refinery saw an 8% decline.

“Despite the decline, Vadinar has overtaken Jamnagar as India’s largest importer of Russian crude,” CREA said.

Imports in smaller facilities also fell significantly. HMEL’s Mundra Oil Terminal and Kochi Refinery saw a month-on-month decline of 74% and 32%, respectively.

The exception was the IOC Mundra oil terminal, which received 570,000 tonnes of Russian crude in September after not seeing any imports in August, according to CREA.

India remains Russia’s second largest consumer of fossil fuels

Despite the drop in oil imports, India remained the second largest consumer of Russian fossil fuels in September 2026, spending €4.1 billion on Russian hydrocarbons, according to CREA.

Crude oil accounted for 88% of India’s €3.6 billion purchases. Coal imports amounted to EUR 309 million, while petroleum products accounted for EUR 161 million. China remained the largest consumer of Russian fossil fuels.

As of December 2022, India accounts for 37% of Russia’s oil exports, while China accounts for 50%, the report said.

India was a relatively marginal buyer of Russian oil before Moscow launched its large-scale invasion of Ukraine in 2022. Its purchases subsequently increased as Western buyers cut imports and Russia offered oil at deep discounts to attract alternative buyers.

Russian Urals crude averaged $90.70 a barrel in September, but continued to trade at a $23 a barrel discount to Brent, unchanged from August.

Tighter supply and Chinese competition are weighing on imports

The decline in India’s purchases of Russian crude may reflect factors other than pressure from the United States, including tighter supply and increased competition from Chinese buyers, according to PTI analysts citing analysts at Kpler.

Analysts expect India’s imports of Russian crude to remain at 1.8-1.9 million barrels per day in October.