Russia has begun importing gasoline from India — a situation that, just a few years ago, seemed virtually impossible for one of the world’s largest producers of petroleum products. Anastasia Levchenko, Researcher at the Gaidar Institute’s Industrial Organization and Infrastructure Economics Department, explained in a comment for RTVI why this happened and whether it signals long-term changes in the market.
According to the expert, gasoline imports from India do not indicate systemic problems in the Russian fuel market. This is a temporary measure necessary to maintain a stable supply while certain oil refining facilities are being restored.
Meanwhile, the supply chain itself is quite complex: the fuel travels a longer route through third countries, which significantly increases logistics costs. To prevent shortages and price hikes in the domestic market, the government compensates importers for these additional costs through special subsidies.
“Importing gasoline from India is more of a crisis-response measure than a new long-term market model. The government is deliberately absorbing these additional costs to maintain a stable fuel supply and prevent a sharp rise in prices for consumers. As Russian refining capacity recovers, the need for such supplies will gradually disappear,” explained Anastasia Levchenko.
She also noted that a significant portion of the fuel is produced at an Indian refinery, where Russian crude is processed. However, legally, the supplies are routed through international traders, which allows logistics to be organized in accordance with current restrictions. According to Anastasia Levchenko, this arrangement is purely tactical in nature and will remain necessary only until the domestic oil refining industry resumes full-scale operations.