Russia turns to Asian fuel imports as refinery strikes bite

Russia is set to receive nearly 270,000 metric tons of refined fuels from Asia this month, according to preliminary shipping data and trade sources. The imports, arranged via ship-to-ship transfers, are aimed at easing domestic fuel shortages caused by Ukrainian drone and missile attacks on Russian oil refineries.

Moscow, traditionally a net exporter of refined products, has been forced to reverse course after repeated strikes on its energy infrastructure in recent months reduced refining capacity. The resulting shortages prompted the government to ban gasoline exports in April, jet fuel in June, and diesel in early July. Those restrictions on gasoline and diesel have now been extended through January next year.

About a third of the August cargoes originated from India, with the remainder loaded off the coasts of South Korea and Malaysia. Traders have used ship-to-ship transfers between tankers to obscure the origins and routes of the shipments, likely to avoid triggering Western sanctions, the sources said.

No such arrivals were recorded in July. This week, two tankers are expected to dock in Russia's Far East. One is carrying at least 40,000 tons of jet fuel loaded near Malaysia's Johor Strait, with one source saying the cargo came from India. The second vessel loaded nearly 30,000 tons of gasoline off Yeosu, South Korea, in early August.

Separately, nearly 30,000 tons of refined fuels loaded in late July were shipped to Russia from South Korea. Japan, in coordination with the Group of Seven, has banned jet fuel exports to Russia, including deliveries via third countries or transfers at sea.