Energy trade between Russia and India is no longer limited to crude oil. A new name has been added: naphtha. In June 2025, India imported approximately 250,000 tonnes of naphtha from Russia, making it clear that Russia is becoming an important chemical supplier to India.
This chemical, essential for the petrochemical industry, was previously purchased by India from the UAE. However, due to its lower cost from Russia, India has now changed its import source. The current international situation and the European Union's sanctions on Russia have opened a strategic opportunity for India, which the government and companies have successfully capitalized on.
What is Naphtha and Why is it so Important?
Naphtha is a light hydrocarbon liquid used in the petrochemical industry. It is used to produce products such as olefins and aromatics, which are used in the manufacture of plastics, synthetic fibers, rubber, resins, detergents, and other chemicals.
In India, the demand for petrochemicals is constantly increasing, making naphtha an important raw material. Previously, this naphtha came from West Asia, but the cheaper alternative from Russia has presented India with an option to reduce costs.
How Much Naphtha Did India Receive From Russia in June?
According to a Reuters report, India imported approximately 250,000 tonnes of naphtha from Russia in June 2025. Although this figure was about 5 percent lower than in May, the overall picture for the six months is quite significant.
Between January and June 2025, India imported more than 1.4 million tonnes of naphtha from Russia. These shipments arrived at major ports on India's west coast, such as Mundra, Hazira, and Sikka. These ports are connected to the country's major refineries and petrochemical companies.
Naphtha Previously Came from the UAE, Now Russia Has Become the Main Supplier
Until now, India purchased a large amount of naphtha from the UAE. However, the cheaper and more stable option from Russia is now proving to be more beneficial for companies. This is why India has reduced imports from the UAE and turned to Russia.
In addition to cost, logistical strategy is also a factor. Russia has increased supplies to Asian countries, allowing India to receive regular and large shipments.
Taiwan, Malaysia, and Turkey are also Major Buyers of Russian Naphtha
Along with India, other Asian countries are also actively purchasing naphtha from Russia. Taiwan imported 234,000 tonnes of naphtha from Russia in June, double the amount compared to May.
Between January and June 2025, Taiwan imported 1.27 million tonnes of naphtha. In addition, Singapore, Malaysia, Turkey, and China are also among the major importers of Russian naphtha. This makes it clear that Russia has compensated for the loss of the European market through Asia.
Decline in Supply from the UAE, Red Sea Becomes a Threat
While India and Asia have accelerated the purchase of naphtha from Russia, the UAE has reduced its purchases. No naphtha from Russia reached Fujairah Port in June, whereas 80,000 tonnes were shipped there in May.
A major reason for this is the attacks by Houthi rebels in the Red Sea. Because of this, traders are now sending goods via the ‘Cape of Good Hope’ route in South Africa. Approximately 300,000 tonnes of naphtha reached Asia via this route in June, compared to only 150,000 tonnes in May.
This Step is also Strategic for India
India's purchase of naphtha from Russia is not only a business decision but also a strategic move. On one hand, it is providing essential chemicals to the industry at cheaper prices, and on the other hand, it is creating a reliable supply chain during times of global instability.
Energy cooperation with Russia has long been important for India, but now this cooperation appears to be increasing in the chemical sector as well as crude oil. This is not only benefiting India's industry, but it is also becoming a new and stable market for Russia.
