Comment on the current situation with fuel in Russia
Deputy Prime Minister Aleksandr Novak said in an interview with Vesti newspaper on August 19 that Russia had begun importing fuel. According to him, the measure is being implemented alongside an export embargo in order to balance supply on the domestic market.
Novak also said that the Russian government, together with regional authorities and oil companies, is continuously monitoring the fuel market. An export ban has already been introduced, along with the launch of imports of petroleum products. The Russian government expects refinery operations to resume soon after maintenance. This, according to forecasts, should stabilize the fuel situation in the coming days.
“The situation in the fuel market will improve significantly, and we will do everything necessary to make that happen. Among other measures, an export ban has already been introduced. Imports have now also begun,” Novak specified.
The fuel crisis began back in late May 2026, when strikes by the Ukrainian drones knocked several Russian oil refineries out of operation. In June and July, restrictions on fuel shipments affected more than 80 Russian regions, although authorities began gradually easing restrictions on fuel sales during the second half of the summer.
At the same time, the government adopted a number of measures: it introduced an export embargo, extended the zero import duty on petroleum products, and reached an agreement with Russian Railways to reduce transportation tariffs. In addition, beginning in August, the Russian Energy Ministry authorized the production and sale of lower environmental-class gasoline (Euro-2 through Euro-4) until mid-2027, provided that it is obligatorily labeled at filling stations.
In August, amid a second wave of fuel shortages that has also affected Moscow, Russia is actively increasing imports of petroleum products from Asia. According to Reuters, citing shipping data and industry sources, external purchases of gasoline and jet fuel this month will reach 270,000 tons. About 90,000 tons of this volume will come from India, while the remainder will consist of cargoes transferred from ship to ship in the waters of South Korea and Malaysia.
Economist Kirill Rodionov drew attention to the key problem with imports from India that is their high cost. According to the Russian Federal Antimonopoly Service (FAS), the import parity price for motor gasoline reached approximately $1190 per ton in July, 40% higher than the average monthly exchange price of AI-92 gasoline on the St. Petersburg Exchange ($850). According to the expert, the difference is attributable to the costs of shipping and insuring vessels, making retail sales of such fuel unprofitable without further price increases at filling stations.
At the same time, the authorities apparently have no alternative. In July, oil refining in Russia fell to its lowest level since 2002 amounting 3.6 million barrels per day. The figure later recovered to just over 4 million, which is still one-third below the seasonal norm. Refinery utilization could set another record low in August, and production is not expected to recover by the end of the year, according to sources cited by Kommersant.
Rodionov attributes the new wave of the crisis to capacity being taken offline due to force majeure events and scheduled maintenance. In his view, there are practically no other explanations, particularly given the easing of restrictions for producers: authorization for the circulation of Euro-2 to Euro-4 gasoline and a reduction in the required share of exchange sales from 15% to 10% of monthly output. Theoretically, this should have left more fuel available to vertically integrated companies for their own networks, yet shortages are persisting.
Experts also point to a paradox: although India remains one of the world’s largest exporters of petroleum products, its imports of crude oil fell to 4.17 million barrels per day in August, the lowest level since the beginning of the Middle East conflict. This creates a certain risk: if the shortage of crude persists, Indian refineries may reduce their utilization, and a serious shortfall in fuel supplies could begin in Asia as early as September.
At the same time, according to The Times of India, the share of Russian oil in India’s imports reached a new high since 2022 in July: out of total imports of 5 million barrels per day, Russia accounted for 2.8 million barrels. However, the discount on Urals crude, which reached $3.90 per barrel in June, had virtually disappeared by August.
Against this backdrop, Russia extended its ban on exports of gasoline and other types of fuel from August 1 through January 31, 2027. Beginning in September, diesel, marine fuel, and gas oils will be exempted from the restrictions but only when exported directly by producers.
In addition to supplies from Asia, Russia is importing fuel from neighboring countries. In June, imports of Belarusian gasoline reached a record 141,000 tons. Kazakhstan could also potentially become a supplier: according to Reuters, the country agreed to send Russia 50,000 tons of AI-92 and AI-95 gasoline by the end of the summer. Later, Kazakhstan’s Energy Ministry clarified that it was prepared to consider such a possibility if it received an official request from Moscow.
The overall picture of fuel imports into Russia currently looks as follows: a refining crisis triggered by attacks on oil refineries and exacerbated by seasonal maintenance has forced the government to replace missing volumes with foreign supplies. The main flows are coming from India (approximately 90,000 tons in August), through ship-to-ship transfers near Korea and Malaysia, as well as from Belarus (141,000 tons in June). Supplies from Kazakhstan may follow in the future.
The main problem is the price: Indian fuel costs 40–100% more than domestic fuel, making retail sales unprofitable without raising prices. At the same time, India itself is reducing its purchases of crude oil, casting doubt on the long-term reliability of this supply route. The situation remains tense: production is not expected to recover by the end of the year, while discounts on Russian oil have practically disappeared, depriving imports of their price advantage.
Source: Rossa Primavera News Agency
