Shadow fleet facilitates Russian gasoline imports amid shortages

Russia is reportedly using a sophisticated network of ships and an Indian oil company to bypass international sanctions and import gasoline, as the country grapples with a severe domestic shortage. The fuel crisis has been exacerbated by Ukrainian drone attacks on Russian refineries.

Reports indicate that queues have formed at gas stations across Russia, with gasoline availability becoming scarce. In Moscow, new queues were reported this week, and Euronews states that gasoline is available at fewer than three out of ten gas stations nationwide. President Vladimir Putin acknowledged in July that Ukrainian drone attacks had created fuel shortages in some regions, assuring that efforts were underway to resolve the issue.

The alleged solution involves importing gasoline from India. In early July, Reuters reported, citing oil industry sources, that Russia had begun importing gasoline from an Indian oil company. On August 5, 42,000 tons of gasoline were delivered to a Russian port from this company, suggesting a new partner is helping to alleviate the fuel crisis. Belarus has also been exporting fuel to its ally.

The Indian company implicated is Nayara Energy, which is 49% owned by the Russian oil giant Rosneft. Nayara Energy has been under EU sanctions since July of the previous year due to its ties with Rosneft. This marks the first time Russia has imported gasoline from India, according to Bloomberg, citing data from the analysis firm Kpler.

The operation involves a complex ship-to-ship transfer system to obscure the origin and circumvent sanctions. For instance, the vessel Cyclone loaded 42,000 tons of gasoline in Vadinar, India, in mid-June. Approximately three weeks later, the gasoline was transferred to the Oman-flagged ship Garnet in the Egyptian port of Damietta. The Garnet then arrived at a Russian port on August 5. This method of transshipment is reportedly used by several vessels with different flags to mask the final destination of the fuel.