Russia has overtaken the United Arab Emirates (UAE) as India’s primary supplier of naphtha in the financial year 2024-25, as Indian refiners increasingly turn to discounted Russian cargoes.
According to preliminary ship-tracking data, this trend is expected to continue into the next fiscal year.
India, the world’s third-largest crude oil importer and consumer, has been sourcing cheaper Russian crude to lower import costs, despite Western sanctions aimed at curbing Moscow’s revenues amid the ongoing conflict in Ukraine. Russia has already been India’s top crude oil supplier for the past two years.
Surging Russian Supply
Data from ship-tracking firms OilX and Kpler reveal that India imported approximately 3 million tonnes of naphtha (74,000 barrels per day) from April 2024 to March 2025, with Russian shipments accounting for more than half. This marks a sharp rise from the previous year when Russian naphtha comprised only 14-16% of India’s total imports.
Russian naphtha, originating from the ports of Ust-Luga, Sheskharis, and Novorossiysk, was delivered to Indian ports such as Mundra, Hazira, and Sikka. The primary recipients of these shipments were petrochemical plants operated by HPCL Mittal Energy Ltd (HMEL) and Reliance Industries Ltd (RIL).
“We will buy from wherever it is cheaper,” said HMEL’s Managing Director & CEO, Prabh Das, at an industry event, though he did not specifically comment on purchases from Russia. RIL did not respond to requests for comment.
Competitive Pricing and Market Dynamics
At present, Russian naphtha is priced at a $14-$15 per tonne discount compared to Middle Eastern naphtha, making it an attractive option for Indian refiners seeking to optimise costs.
Despite ranking seventh among Asian naphtha importers, India is projected to increase its imports due to rising domestic demand for petrochemicals and the expected commissioning of new crackers over the next three to four years.
Meanwhile, the UAE, which had been India’s leading naphtha supplier, saw its market share drop significantly. Data indicate that the UAE’s share, primarily from Abu Dhabi National Oil Company (ADNOC), has declined to just over 20%—nearly half of its previous level. ADNOC declined to comment on its naphtha exports to India.
“Prices have been attractive for us, and we will continue to purchase from them [Russia],” a source at a northern Indian refining complex stated. The source also noted that refining margins in India have been below expectations this year, prompting refiners to prioritise cost-effective feedstock.
Geopolitical Considerations
Russia redirected its naphtha exports to Asia following the European Union’s 2022 ban on Russian oil imports in response to the Ukraine war. With ongoing diplomatic efforts by the Trump administration to broker a ceasefire in Ukraine, there is speculation that sanctions on Russian oil may be lifted. However, analysts suggest that even if U.S. sanctions are eased, European buyers may continue to avoid Russian imports, leaving Asia as Russia’s primary market.
“Asia will likely remain the top buyer of Russian oil and naphtha, as European countries may still hesitate to resume imports,” said Jorge Leon, an analyst at Rystad Energy.
Indian Naphtha Imports (2023-24 vs. 2024-25, in 1,000 metric tonnes)
| Supplier | OilX (2023-24) | OilX (2024-25) | Kpler (2023-24) | Kpler (2024-25) |
|---|---|---|---|---|
| UAE | 1,276.81 | 679.13 | 1,182 | 764.43 |
| Qatar | 636.13 | 267.00 | 614.60 | 264.30 |
| Russia | 431.60 | 1,705.88 | 504.50 | 1,738.20 |
| Others | 719.75 | 343.35 | 761.20 | 307.07 |
| Total | 3,064.29 | 2,995.36 | 3,062.30 | 3,074.00 |
As India continues to prioritise cost efficiency in its refining sector, Russian naphtha is expected to remain a key part of the country’s energy mix, further reshaping regional trade flows.
