Russia is preparing to start massive seaborne imports of gasoline from India in an effort to close a growing domestic gasoline shortage brought on by a barrage of Ukrainian drone attacks on refinery infrastructure.
According to the Kyiv Post, based in Ukraine, draft amendments to Russia’s Tax Code would expand an existing subsidy mechanism for businesses that import gasoline from India.
According to the report, the subsidy would be computed using an indicative gasoline price in India and the cost of moving fuel from Indian ports to Russia.
According to a RBC report, the media outlet said that the State Duma’s budget and tax committee has approved the measure.
A severe decline in Russian refining capacity in 2026 as attacks grew worse led to Russia’s subsidy support for Indian refined crude.
After the full-scale invasion of Ukraine, India became Russia’s largest crude purchaser, buying between 1. 5 and 2 million barrels.
It reached a record of 2. 66 million barrels per day in June 2026, some of which is processed in Indian refineries and subsequently re-exported as petroleum products, such as gasoline.
Asian nations imported a large portion of India’s overall gasoline exports, which hit a record high of 4 lakh barrels per day in 2025.
Russia’s crude processing has reached its lowest point in two decades as a result of refinery strikes, which have lowered gasoline production by about 25%.
Operating refineries are producing around 85,000 tonnes of gasoline each day, compared to a summer demand of approximately 1. 11 lakh tonnes, resulting in a structural daily deficit of about 25,000 tonnes.
The report stated that the deficit has increased to roughly 20% of domestic consumption, driving up wholesale gasoline prices beyond 100 rubles.
Due to a lack of aviation fuel and an increase in its price, Russian light aircraft operators have started replacing it with automotive gasoline, it stated.