Russian oil finding its way to the West? Indian refiners’ fuel exports to nations sanctioning Moscow jump 43%

In September, refineries in India, Turkiye and Brunei shipped oil products worth €1 billion to countries imposing sanctions on Russia. The trade matters because some products were made using Russian crude, despite restrictions targeting Russian energy exports. The destinations included the European Union, Australia, the United States and New Zealand.

India’s Reliance Industries refinery at Jamnagar was central to the EU shipments. It accounted for six of the seven cargoes unloaded at European ports. Italy received three cargoes, Romania two, and Spain and Cyprus one each. A 104,000-tonne diesel cargo from Jamnagar was still sailing to Rotterdam.

The report also tracked several Indian refineries receiving Russian crude. They included Jamnagar, Indian Oil Corporation’s Paradip refinery, Nayara Energy’s Vadinar refinery, HMEL Mundra Oil Terminal, Kochi and IOC Mundra Oil Terminal. Jamnagar also sent €122 million in products to the United States.

The reported exports totaled €1 billion in September. This was 43% higher than the value recorded in August. The figure measures the value of oil products shipped from covered refineries to countries imposing sanctions on Russia. It does not mean production or shipment tonnage increased by exactly 43%.

The destinations varied considerably. The European Union received €667 million in products. Australia received €168 million, the United States €154 million and New Zealand €19 million. CREA estimated that €295 million of the total exports had been refined from Russian crude.

EU-bound exports from refineries processing Russian crude rose 80% month-on-month. That total included a 104,000-tonne gasoil cargo from Jamnagar that was still traveling to Rotterdam. Jamnagar also accounted for €122 million of the group’s exports to the United States.

Economic sanctions are restrictions imposed on a country, companies or trade to apply pressure and limit economic benefits. In this story, sanctions seek to reduce Russia’s energy revenues after its invasion of Ukraine. The article identifies countries imposing sanctions but gives its clearest specific rule for the European Union.

The EU prohibited imports of oil products refined from Russian crude in January 2026. However, the rules exempt net crude oil exporters. That means a product can be made in a country whose overall crude exports exceed its imports, even if that country’s refinery has processed Russian crude. The finished fuel may then be declared as originating from that country.

CREA argues that this weakens the restriction. It recommends banning imports from any refinery that processed Russian crude during the previous six months, regardless of the finished product’s declared origin. That proposal is not adopted EU policy.

The route depends on separating the crude’s origin from the finished fuel’s declared origin. Russian crude is bought by a refinery in a third country, such as India. The refinery processes it into products such as diesel, which can then be sold to countries restricting Russian oil products.

The article says net crude oil exporters are exempt from the EU rule. Their refineries may still process Russian crude and export the resulting products. The finished fuel can therefore enter global supply chains under the refinery country’s declared origin rather than as a direct Russian oil product.

The September shipments illustrate this mechanism. Jamnagar accounted for six of seven cargoes unloaded at EU ports, including a 104,000-tonne diesel cargo en route to Rotterdam. The EU received €667 million from covered refineries, although CREA estimated €295 million of all exports had been refined from Russian crude.

Refining Russian crude outside Russia can reduce the direct impact of sanctions. It gives Russian oil another route to buyers, even when those buyers restrict imports of Russian-origin oil products. Continued demand can support Russia’s ability to sell crude and collect energy revenue.

The mechanism is indirect trade. A refinery buys Russian crude, converts it into diesel or another product, and exports that product under the refinery country’s declared origin. The EU exception for net crude exporters allows this possibility. In September, products worth €1 billion went to sanctioning countries, and CREA estimated €295 million had been refined from Russian crude.

This does not prove every shipment violated EU rules. The article says the proposed broader restriction has not been adopted. CREA wants imports banned from refineries that processed Russian crude within six months. Without such a rule, Russian crude can continue reaching global markets through third-country processing.

India was a relatively marginal buyer of Russian oil before the full-scale invasion of Ukraine in 2022. Its purchases then increased sharply. Western buyers reduced imports, while Russia offered crude at substantial discounts to attract alternative customers. India became one of the largest buyers of Russian fossil fuels.

Price mattered. Russian Urals crude averaged $90.70 a barrel in September but traded at a $23-per-barrel discount to Brent. That discount made Russian crude attractive to Indian refineries. India’s purchases also supported refining and exports of products to other markets.

India’s imports fell 13% in September, the second monthly decline and the lowest level since April. Analysts cited tighter supply and increased competition from Chinese buyers, as well as possible US pressure. They expected Indian imports to remain around 1.8 million to 1.9 million barrels per day in October.

Crude oil is petroleum in its unprocessed form. An oil refinery is an industrial facility that separates and transforms crude into usable products. Refined oil products include fuels such as diesel, which the article calls gasoil in describing a Jamnagar cargo.

The supply chain begins when crude is bought and transported to a refinery. The refinery processes it into products with different uses. Those products can then be loaded onto ships and sent to ports in other countries. Their trade value and declared origin may be recorded separately from the crude used to make them.

The article shows this movement through Indian refineries. Russian crude arrived at facilities including Jamnagar, Paradip and Vadinar. Jamnagar then exported products to the EU and United States. One 104,000-tonne diesel cargo was still traveling to Rotterdam, while other shipments reached Italy, Romania, Spain and Cyprus.