NEW DELHI | October 18, 2026
India’s Russian oil trade is delivering a striking twist in the global energy market: while Western countries have imposed restrictions on Russian oil and petroleum products, refineries in India continue to play a major role in supplying fuels to international markets. A new report by the Centre for Research on Energy and Clean Air (CREA) estimates that refineries in India, Turkiye and Brunei exported €1 billion ($1.2 billion) worth of oil products to countries sanctioning Russia in September 2026, marking a 43% increase from August.
At the centre of this trade is Reliance Industries’ massive Jamnagar refinery in Gujarat. Six of the seven shipments from the refineries covered by the report that were unloaded at European Union ports in September originated from Jamnagar. The figures highlight India’s growing importance in global refining and the complicated journey of crude oil through an international supply chain shaped by sanctions, commercial decisions and geopolitical tensions.
But there is a crucial distinction: the €1 billion represents the value of oil products exported by refineries in the three countries to sanctioning markets. CREA estimates that €295 million of those products were refined from Russian crude. The figures do not establish that the entire export value represents profit earned from Russian oil.
The Numbers Behind India’s Russian Oil Trade
The CREA report offers a snapshot of how oil trade continues to evolve despite restrictions on Russian energy exports.
- €1 billion: Oil products exported by refineries in India, Turkiye and Brunei to countries sanctioning Russia in September.
- 43%: Month-on-month increase in the value of those exports.
- €295 million: Estimated value of products refined from Russian crude.
- €667 million: Value of products purchased by the European Union from the refineries covered by the report.
- €4.1 billion: India’s total purchases of Russian fossil fuels in September, including crude oil, coal and petroleum products.
- 13%: Month-on-month decline in India’s imports of Russian crude oil.
These figures reveal two developments occurring simultaneously: India reduced its Russian crude purchases in September, yet exports from refineries using Russian crude to sanctioning markets increased sharply.
The difference reflects the complexity of the refining and trading business. Crude imports, refinery output and export shipments do not necessarily move in the same direction during a particular month.
Jamnagar Refinery Takes Centre Stage
Reliance Industries’ Jamnagar refinery has emerged as a key part of the story. Its scale and export infrastructure allow it to process crude oil into products such as diesel and other fuels for international buyers.
According to CREA, six of the seven shipments from the refineries covered by its analysis that were unloaded at EU ports in September came from Jamnagar. Italy received three shipments, Romania two, and Spain and Cyprus one each.
A separate cargo of approximately 104,000 tonnes of gasoil, commonly used to produce diesel-type fuels, was still heading towards Rotterdam at the end of September.
The refinery also supplied €122 million worth of products to the United States among the exports covered by the report. Russian crude accounted for 32% of Jamnagar’s crude imports between July and September, according to CREA.
The figures underline Jamnagar’s importance in the international fuel trade. However, they should not be interpreted as proof that every product exported by the refinery was made from Russian crude. Refineries process different crude grades, and the origin of the feedstock matters when assessing individual shipments and sanctions compliance.
How Can Fuel Reach Western Markets Despite Russian Oil Restrictions?
The central issue is the distinction between crude oil and refined petroleum products.
Crude oil is the raw material extracted from the ground. Refineries process it into commercially useful products, including diesel, petrol, aviation fuel and other petroleum derivatives.
Sanctions can treat these products differently depending on their origin, the country in which they are processed, the applicable legal rules and the date of the transaction.
The European Union’s prohibition on importing petroleum products made from Russian crude took effect on January 21, 2026. However, CREA says the existing framework leaves a gap that can allow products from refineries processing Russian crude to enter sanctioning markets under certain circumstances.
The report argues that the rules should focus more directly on refinery operations rather than relying primarily on the declared origin of a finished product or the trading country’s overall crude-export status.
That is CREA’s policy recommendation, not evidence that every shipment identified in the report violated sanctions. Whether a particular transaction is lawful depends on the applicable regulations, the shipment’s circumstances and the relevant authorities’ assessment.
What Is CREA Asking the European Union to Change?
CREA has recommended that restrictions be extended to products from any refinery that has processed Russian crude during the previous six months.
Under the proposal, the restrictions would apply at the refinery level, regardless of the declared origin of the finished petroleum product.
The objective would be to reduce the possibility that Russian crude could enter a restricted market after being processed in a third country.
The organisation estimates that, in September, the European Union purchased €667 million worth of products from the refineries covered by the analysis. Australia bought €168 million, the United States €154 million and New Zealand €19 million.
CREA estimates that €295 million of the products exported to these markets were refined from Russian crude.
The proposal could have implications for refiners, traders and fuel-importing countries. A broader refinery-level restriction could require buyers to conduct more detailed checks on feedstock sources, refinery operations and shipment documentation.
For India, the issue could become particularly important because the country has developed a substantial role in refining and exporting petroleum products while continuing to buy crude from multiple international suppliers.
India Cuts Russian Crude Imports, but Russia Remains a Major Supplier
Despite the surge in exports, India’s imports of Russian crude fell 13% in September compared with August, marking the second consecutive monthly decline and the lowest level since April 2026, according to CREA.
Imports declined across the three major refining facilities highlighted in the report:
- Jamnagar recorded a 27% month-on-month decline.
- Indian Oil Corporation’s Paradip refinery recorded a 21% decline.
- Nayara Energy’s Vadinar refinery recorded an 8% decline.
Even with the reduction, Vadinar overtook Jamnagar as the largest importer of Russian crude during the month.
CREA also reported that the Indian Oil Corporation’s Mundra oil terminal received approximately 570,000 tonnes of Russian crude in September after recording no such arrivals in August.
The variation across facilities suggests that India’s overall import figures conceal significant differences between individual refiners and terminals.
The decline also does not necessarily mean India is abandoning Russian crude. Oil availability, prices, refinery requirements, shipping arrangements and competition from other buyers can all affect monthly purchasing volumes.
Russia Still Earns Billions From Indian Energy Purchases
India remained one of Russia’s largest customers for fossil fuels in September, purchasing an estimated €4.1 billion worth of Russian hydrocarbons, according to CREA.
Crude oil accounted for approximately €3.6 billion, or 88% of the total. Coal contributed around €309 million, while petroleum products accounted for approximately €161 million.
Since December 2022, India has accounted for an estimated 37% of Russia’s crude oil exports, compared with China’s 50%, according to the report.
Russia became a major supplier to India after Western buyers reduced their purchases following the invasion of Ukraine. Discounted Russian crude offered Indian refiners an opportunity to diversify supplies and manage input costs.
However, market conditions have changed. CREA and analysts cited in related reporting point to tighter availability of Russian crude and stronger competition from Chinese buyers as factors behind India’s recent decline in purchases.
India’s Russian crude imports were projected to remain around 1.8 million to 1.9 million barrels per day in October, according to estimates cited in the reporting.
Is India Making a Profit From Russian Oil?
The commercial opportunity lies in refining crude oil into higher-value products and selling those products to buyers around the world.
Refining margins depend on several variables, including the purchase price of crude, the cost of shipping and insurance, processing expenses, the mix of products produced and the prices available in destination markets.
Discounted crude can improve the economics of refining, but the final margin is not guaranteed. It changes with global oil prices, demand for diesel and other fuels, operating costs and competition.
The €1 billion export figure is therefore not the same as profit. It measures the value of products shipped by the refineries covered by CREA’s analysis to sanctioning countries. The estimated €295 million associated with Russian crude is also a product-value estimate, not a calculation of refinery earnings or the amount of money retained by India.
Nevertheless, the figures demonstrate why India’s refining sector matters to the global energy market. The country can import crude from different suppliers, process it domestically and export finished fuels to markets with different supply requirements.
That commercial role is now intersecting with a growing debate over how Western sanctions should treat products made from Russian feedstock.
What Happens Next?
The next developments will depend on whether European authorities consider changing the way they enforce restrictions on petroleum products made from Russian crude.
If the EU adopts a refinery-level approach similar to CREA’s recommendation, Indian refiners and international buyers could face more extensive due diligence requirements. If the existing rules remain unchanged, trade flows will continue to depend on the current legal framework and the specific circumstances of individual shipments.
India will also have to balance commercial opportunities with its broader energy-security priorities and relationships with major trading partners.
The Bottom Line: India’s Russian oil trade is about more than buying crude at a discount. The country’s refineries are important links in global fuel supply chains, and exports from refineries in India, Turkiye and Brunei to countries sanctioning Russia rose 43% in September to €1 billion. Jamnagar played a leading role in shipments reaching European ports. But export value is not profit, and the presence of Russian crude in a refinery does not automatically establish that every shipment breaks sanctions. The next major question is whether the European Union changes its rules to close what CREA describes as a regulatory gap.
