In 2023, Russia eclipsed the United Arab Emirates to become India’s top supplier of naphtha, according to calculations reported by Reuters and based on data from the British analytics firm Vortexa. The shift reflects India’s ongoing procurement strategy amid sanctions and elevated energy costs, as it seeks affordable fuel inputs from diverse sources.
Vortexa’s figures show that India imported about 2.1 million tons of naphtha in the January‑September period, with roughly 770 thousand tons sourced from Russia. The change is tied to lower prices for certain Russian oil products and the broader economic environment, which has encouraged buyers to diversify away from traditional suppliers. Historically, the UAE held the position as India’s largest naphtha supplier, while shipments from Russia were comparatively modest due to logistical and transit considerations.
Looking at the 2023 full year, naphtha imports from the UAE to India slightly declined, moving from 697 thousand tons to about 686 thousand tons. Reliance Industries emerged as the leading importer of Russian naphtha, underscoring India’s growing role in global trade flows for midstream feedstocks. Industry forecasts indicate that imports of naphtha could rise further as India expands its petrochemical capacity and as refinery maintenance schedules align with demand cycles. Projections suggest India’s consumption of refined petroleum products could rise significantly in the coming years, with estimates pointing toward substantial growth through 2040.
In early September, India continued purchasing Russian Ural crude despite higher prices, underscoring the country’s priority on maintaining oil supply stability amid global price pressures and geopolitical considerations. The broader market context involves adjustments to supply chains and pricing mechanisms as markets respond to sanctions regimes and sanctions-related risk assessments.
Earlier in the period, ALROSA temporarily halted diamond deliveries to India, an adjustment that reflected broader macroeconomic and trade considerations impacting commodity flows. The evolving trade landscape shows how buyers and sellers recalibrate portfolios in response to sanctions, currency movements, and logistics constraints, shaping the balance of supply for feedstocks like naphtha across Asia and beyond.