Indian Refiners Pull Back Russian Crude Purchases to May Levels as Port Attacks Curb Supply
India's August Russian crude intake fell to 2.08 million b/d as Ukrainian strikes on loading terminals and rising Chinese competition reduced available Urals barrels.
India's imports of Russian crude fell to 2.08 million barrels per day in August, shipping data show, reversing a surge to 2.79 million b/d in July and returning to levels last seen in May. Indian refiners had aggressively expanded Russian crude purchases through the summer as the Iran conflict disrupted Hormuz-dependent supply chains, but Ukrainian attacks on Russian loading terminals and growing Chinese competition have since compressed the available pool of discounted Urals barrels.4,3
Ukrainian drone and missile strikes on Russian export infrastructure have cut seaborne loading sharply. Russia shipped 3.71 million b/d in the four weeks through August 9 (2026-08-09), the lowest since May, according to vessel-tracking data compiled by Bloomberg. Flows then dropped to just 3.25 million b/d in the most recent weekly reading, down from 3.5 million b/d the week before.2
China has absorbed a growing share of what Russia can load. Chinese seaborne imports of Russian crude are estimated at 1.25 million b/d in August, according to Kpler data cited by Reuters — down from 1.423 million b/d in July, but July and August together are still China's strongest two-month stretch for Russian seaborne crude since April. The driver is straightforward: Beijing is replacing lost Iranian barrels, with China expected to receive just 340,000 b/d from Iran this month, roughly one-third of the 1.14 million b/d it imported in March.3
That shift is rerouting specific cargo flows away from India. Russian crude loaded from European ports is estimated to account for 31% of China's seaborne Russian imports in August, up from 22% in June, according to Kpler. Flows from Russia's European terminals toward India are expected to fall about 770,000 b/d, or nearly 30%, this month.3
India's total crude intake has taken the full weight of these changes. Kpler data cited by Reuters put India's total crude imports at 4.17 million b/d in August, the lowest reading since the Iran war began and down from 5.06 million b/d in July.3
Indian refiners are widening their sourcing. Rigzone reported on Wednesday (2026-08-26) that processors have been seeking barrels from West Africa and other regions to offset the shortfall. The push reflects the same diversification seen earlier in the conflict: India's oil supply from the UAE climbed above pre-war levels to a multi-year high in May (2026-05), with imports from Russia, Venezuela, and Angola also rising, Reuters reported at the time.4,1
But the sourcing calculus could shift again. Industry sources told Reuters before the Hormuz interim agreement was signed that Indian refiners were prepared to scale back spot purchases from Latin America and elsewhere once the waterway reopened; Middle Eastern producers had already asked refiners to lift full committed monthly volumes under annual contracts once flows resumed. Refiners are also monitoring whether Iranian crude becomes accessible should sanctions ease and banking channels reopen.1
The price incentive for Russian barrels remains intact. Urals stood at $77.09/bbl on Monday (2026-08-31) against ICE Brent front-month at $90.24 — a spread of more than $13 that has underpinned Indian refiner appetite for discounted Russian oil throughout the conflict. Yet with loading disruptions limiting what Russia can physically export, the discount is not currently translating into available supply. [live prices]
August exports of Russian light and middle distillates held at 1.29 million b/d, according to data cited by Reuters, providing some continued product-market support even as crude loading fell. Russian crude and condensate output rose by roughly 100,000 b/d in July (2026-07) to more than 9 million b/d, helped by stronger exports and a domestic refinery recovery, suggesting Moscow has production headroom if attack-related loading disruptions ease.3,2
Whether Indian refiners can rebuild Russian crude volumes in September hinges on two things pointing in opposite directions: how quickly Ukraine's campaign against loading infrastructure abates, and how fast Middle Eastern contract supplies return through Hormuz. Neither is close to resolved.2,1