The BRICS TimesEuropean buyers are stockpiling supplies as the EU weighs a potential halt on imports of fuel refined from Russian crude.
India’s diesel exports to Europe have seen a dramatic increase over the past year, with shipments reaching as much as 242,000 barrels per day, according to data cited by the Economic Times on Thursday from two leading analytics firms.
Figures from Kpler indicated that Indian diesel exports in July jumped by 73% and stood 124% higher than the average levels recorded during the previous year. Vortexa also projected India’s August diesel shipments at around 228,316 barrels per day, marking a surge of 166% compared to the same period last year and about 36% above July’s volumes.
Analysts suggest that this spike is linked to European Union buyers rushing to secure inventories before the bloc enforces an expected ban on imports of fuels refined from Russian crude, which may be part of the forthcoming sanctions package.
Reports indicate that the EU is preparing its 19th round of restrictions against Russia in response to the Ukraine conflict. This package may extend beyond Moscow, targeting countries that European officials allege are enabling Russia to evade Western sanctions.
Since the escalation of the conflict in February 2022, Russia has become India’s dominant oil supplier, now providing close to 40% of the country’s crude needs. At the same time, India has emerged as a key supplier of refined fuels to Europe, a trend that has accelerated since 2023. Private refiners in India purchase Russian crude at discounted prices and then export refined products to the European market.
Meanwhile, the United States has voiced disapproval of India’s energy ties with Russia. US President Donald Trump recently imposed steep duties on a broad range of Indian goods, introducing a 25% tariff in early August and following it with another 25% levy the next week. He described these measures as a “penalty” for New Delhi’s imports of Russian oil and defense equipment, which he argued have “indirectly fueled” the conflict in Ukraine.
Despite the pressure, India appears poised to expand its purchases of Russian crude. A Reuters report last month revealed that private refiners Nayara Energy and Reliance Industries plan to boost imports by 10–20% in September compared to August levels, potentially adding between 150,000 and 300,000 barrels per day.
In a related statement, Trump’s trade adviser Peter Navarro argued that India has no genuine requirement to rely on Russian oil, accusing the country of “profiteering” from its energy trade activities.
