Indian refiners’ fuel exports to West surge 43% amid Russian crude imports

Refineries in India, Turkiye, and Brunei that process Russian crude shipped €1 billion in oil products to countries sanctioning Russia during September. The value was 43% higher than in August. The trade matters because those countries restrict Russian energy, yet their markets still received fuel made at plants using Russian oil.

The EU purchased €667 million of these products. Australia bought €168 million, the United States €154 million, and New Zealand €19 million. Jamnagar, Reliance Industries’ refinery in Gujarat, supplied six of seven cargoes unloaded at EU ports. Exports reported as headed for EU ports rose 80% in value.

CREA estimated that €295 million of the total was refined from Russian crude. The report argues that current rules leave a gap because they focus on the product’s origin or a country’s export status, rather than on the refinery that processed the crude. CREA recommends a refinery-level ban.

The refineries shipped €1 billion worth of oil products to countries sanctioning Russia in September. This was 43% more than in August. The figure covers plants in India, Turkiye, and Brunei, and includes products bought by the EU, Australia, the United States, and New Zealand.

The EU was the biggest buyer, taking €667 million. Australia bought €168 million, the United States €154 million, and New Zealand €19 million. CREA estimated that €295 million of the total was refined from Russian crude. Jamnagar supplied six of the seven cargoes unloaded at EU ports, including a 104,000-tonne gasoil cargo still traveling to Rotterdam.

These figures matter because the EU banned imports of products refined from Russian crude in January 2026. CREA says the ban can miss fuel processed in countries with net-crude-exporter exemptions. Its proposed fix would judge the refinery’s recent crude use, not just the final product’s declared origin.

Crude oil is the unprocessed petroleum mixture produced from underground deposits. It contains many different hydrocarbons and is not usually ready for engines or household use. Refined oil products include diesel, gasoline, jet fuel, and other materials made from that raw mixture.

A refinery heats crude and separates it into parts according to their boiling points. It then uses additional processes to change some parts, remove impurities, and meet product specifications. One shipment can therefore contain diesel, gasoline, or other products even though all began as crude oil. Jamnagar, for example, sent a 104,000-tonne cargo of gasoil, a diesel fuel.

This distinction matters in the article because the EU ban targets products refined from Russian crude, not only crude itself. A final cargo may be legally described by its immediate production country, while the crude used earlier came from Russia. CREA says that difference makes the trade harder to regulate and proposes refinery-level controls.

Jamnagar could send fuel to European and U.S. buyers because the EU rule does not automatically block every product from a country that imports Russian crude. The ban applies to oil products refined from Russian crude, while an exemption covers net crude exporters. CREA says that exemption does not prevent a country or refinery from processing Russian-origin oil.

Reliance Industries’ Jamnagar refinery supplied six of seven cargoes unloaded at EU ports in September. It also supplied the largest U.S.-bound exports from the group, worth €122 million. Russian crude made up 32% of Jamnagar’s imports from July through September. One 104,000-tonne gasoil cargo from Jamnagar was still en route to Rotterdam.

The article does not establish that any shipment violated the ban. It reports that CREA sees a regulatory gap. The advocacy group recommends barring products from any refinery that processed Russian crude during the previous six months, regardless of the product’s declared origin.

India was only a marginal buyer of Russian oil before the 2022 invasion of Ukraine. Afterward, Western buyers retreated from Russian supplies, and Russia sold crude at steep discounts. Those conditions made Russian barrels more attractive to Indian refiners and helped India become one of Russia’s top customers.

The price gap remained significant in September. Urals crude averaged $90.7 a barrel, but traded $23 below Brent, unchanged from August. Since December 2022, India has taken 37% of Russia’s crude exports, while China took 50%. India was Russia’s second-largest fossil-fuel customer in September, spending €4.1 billion on Russian hydrocarbons.

India’s purchases later softened. Russian-crude imports fell 13% in September, the second straight monthly decline. Kpler analysts linked the fall partly to tighter supply and stronger Chinese competition, rather than only U.S. pressure. They expected India’s October imports to remain between 1.8 million and 1.9 million barrels per day.

If these exports continue, Russia could keep earning money indirectly from crude sold to Indian, Turkish, or Bruneian refineries. That would weaken the practical effect of restrictions aimed at cutting Russian fossil-fuel revenue. The article does not estimate how much additional revenue Russia would gain or how sanctions policy would change.

India’s refiners could continue buying discounted Russian crude, processing it, and selling fuels to overseas customers. Jamnagar already supplied six of seven cargoes unloaded at EU ports and sent €122 million of its largest group of U.S.-bound exports. Such trade could remain valuable, but tighter supply and Chinese competition may limit volumes.

For Western sanctions, continued flows could increase pressure to close the refinery-level gap. CREA recommends banning products from plants that processed Russian crude within the previous six months. That is an advocacy-group recommendation, not current policy. The article reports no final decision or forecast about new restrictions.

Crude oil contains a mixture of hydrocarbons. A refinery first heats it and separates components by their boiling points. It then processes those components further, removing impurities and changing them into products such as gasoline, diesel, gasoil, and other fuels. One crude shipment can therefore become several different products.

The origin becomes harder to follow once products leave the refinery. Fuel can be stored, blended, transported, and sold under the identity of the place where it was refined. The article gives Jamnagar as an example: Russian crude made up 32% of its imports from July through September, while the refinery sent fuel to European and U.S. buyers.

This is why CREA wants controls based on refinery activity. Its proposal would block products from any plant that processed Russian crude during the previous six months, whatever the product’s declared origin. The article presents this as a recommendation, not an adopted policy.