India-Based Firm Tapped in New Russian Oil Export Scheme, Ukraine Intelligence Reveals.

Russia’s Fuel Export Crisis

According to UATV: Facing a domestic fuel shortage, the Kremlin has intensified covert oil product processing and export operations by leveraging the Indian company Nayara Energy. On June 20, 2023, the tanker AGNI departed from a Nayara Energy oil terminal carrying 67,500 metric tons of refined petroleum products. The cargo was subsequently transferred to another vessel, the GARNET, in open waters. During this operation, the Automatic Identification System (AIS) was deliberately turned off to avoid detection.

Military Strikes Cripple Refining Capacity

On July 14, 2023, Ukraine’s Defense Intelligence Directorate (GUR) reported that Russia had stepped up these gray-market fuel export schemes. Over the preceding 100 days, Ukrainian defense forces had carried out approximately 50 strikes against Russian fuel infrastructure. At least 24 of Russia’s 34 largest oil refineries were hit. This wave of attacks drove Russia’s crude oil processing levels to their lowest point in more than 21 years.

Russia now faces severe challenges in its refining sector, forcing it to seek alternative routes for exporting petroleum products. The use of foreign entities like Nayara Energy appears to be part of the Kremlin’s strategy to mitigate the current fuel deficit.

This situation underscores the mounting pressure on Russia’s economy from both military operations and international sanctions. The loss of substantial refining capacity due to Ukrainian strikes has complicated Moscow’s ability to maintain a stable domestic fuel market. By outsourcing export operations to foreign firms, the Kremlin may be attempting to establish new channels to address its economic woes amid global energy disruptions.