Indian refiners lift fuel shipments to Western buyers while still running Russian crude

what happened

Refineries in India, Turkiye and Brunei, all processing Russian crude, shipped fuel worth roughly 1 billion euros ($1.2 billion) to sanctioning countries in September, a 43% rise from the prior month, TradingView reports, citing the think tank CREA. Reliance Industries' Jamnagar plant accounted for six of the seven cargoes unloaded at EU ports during the month, even though the bloc bans fuel made from Russian oil.

The EU ban on products refined from Russian crude took effect in January 2026, yet it exempts net crude exporters. CREA argues this leaves a loophole, since net-export status does not prevent refining Russian-origin oil, and it recommends enforcing the ban at the refinery level. That is an advocacy recommendation rather than current policy.

India's imports of Russian crude fell 13% in September, the second monthly decline in a row and the lowest since April. Vadinar overtook Jamnagar as the country's largest importer of Russian crude despite lower intake. Analysts at Kpler link the drop partly to tighter supply and stronger Chinese competition, not only to US pressure, and expect October imports of 1.8-1.9 million barrels per day. Urals averaged $90.7 a barrel in September, $23 below Brent.

why it matters

For oil markets, these flows suggest Russian barrels keep reaching buyers through refining hubs, so the effect of the EU ban on overall supply may be smaller than expected. The Urals discount to Brent, unchanged at $23, points to continued pressure on Russian export prices. European diesel markets are the most direct place to see the impact.

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