Russia's Crude Boosts India's Fuel Exports To EU By 58 Per Cent In 2024, Making It Europe's Top Refined Oil Supplier

India’s exports of fuels such as diesel to the European Union (EU) surged by 58 per cent in the first three quarters of 2024, largely driven by refined oil derived from discounted Russian crude, according to the Centre for Research on Energy and Clean Air (CREA), a European think tank.

CREA’s latest report highlights that "India has capitalised on a refining loophole, becoming the largest supplier of oil products to the EU." The Jamnagar, Vadinar, and New Mangalore refineries in Gujarat—heavily dependent on Russian crude—have notably contributed to this rise, exporting significantly higher volumes to the EU this year.

The EU and G7 nations introduced a price cap and embargo on Russian crude in December 2022 to limit Moscow's revenue sources and undermine its funding for the invasion of Ukraine. Yet, with no restrictions on refined products made from Russian crude, non-sanctioning nations like India have continued importing large quantities of Russian oil, refining it, and legally exporting it to price-cap coalition countries.

India, now the second-largest importer of Russian crude since the invasion, has increased its Russian oil imports from under 1 per cent of total oil purchases pre-conflict to nearly 40 per cent—fueled by discounts on Russian crude due to the price cap and Europe’s shift away from Moscow.

Before Russia’s invasion of Ukraine, Europe imported an average of 154,000 barrels per day (bpd) of diesel and jet fuel from India, a figure that has nearly doubled. CREA’s earlier report noted that, since the oil price cap took effect in December 2022, over one-third of India’s oil product exports to sanctioning nations were derived from Russian crude, valued at approximately EUR 6.16 billion ($6.65 billion).

India’s position as a major exporter of refined oil products to Europe highlights the strategic advantage gained from discounted Russian crude and a lack of restrictions on refined products.

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