Russia has surpassed the United Arab Emirates to become India’s top supplier of naphtha in the year leading up to March 2025, as Indian refiners take advantage of discounted shipments, according to preliminary ship-tracking data. This trend is expected to continue for another year. India, the world’s third-largest crude oil importer and consumer, has increasingly relied on cheaper Russian oil to cut import costs, despite Western sanctions aimed at reducing Moscow’s revenues during the Ukraine conflict. Russia has also been India's primary crude oil supplier for the past two years.

Between April 2024 and March 2025, India imported approximately 3 million tonnes (74,000 barrels per day) of naphtha, with Russia accounting for more than half of the total— a significant increase from just 14-16% in the previous year, as per data from OilX and Kpler. Russian naphtha shipments from Ust-Luga, Sheskharis, and Novorossiysk ports were delivered to western Indian ports such as Mundra, Hazira, and Sikka. These supplies were directed to petrochemical plants operated by HPCL Mittal Energy Ltd (HMEL) and Reliance Industries.

HMEL's Managing Director & CEO, Prabh Das, stated at an industry event that the company would continue to buy from the most cost-effective sources but did not specifically comment on Russian oil purchases. Reliance Industries did not respond to requests for comment. As of this week, Russian naphtha was priced $14-$15 per tonne lower than Middle Eastern alternatives, according to two trade sources.

Although India ranks seventh among Asian naphtha importers, its imports are expected to increase due to rising domestic petrochemical demand and the launch of new petrochemical crackers over the next 3-4 years. Meanwhile, the UAE's share—primarily supplied by Abu Dhabi National Oil Company—dropped to just over 20%, nearly half of what it was in the previous period.

A source from an integrated refining complex in northern India noted that the cost-effectiveness of Russian supplies makes them an attractive choice, especially since Indian refining margins have been lower than expected this year. Following Europe’s ban on Russian oil imports in response to the 2022 Ukraine invasion, Russia has redirected its naphtha exports to Asian markets.

Analysts suggest that a potential Ukraine ceasefire deal being pursued by the Trump administration could lead to the lifting of sanctions on Russian oil. However, even if U.S. sanctions are removed, Europe may still avoid Russian imports, ensuring that Asian countries remain Russia’s primary oil buyers, according to Rystad Energy analyst Jorge Leon.

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