Key Highlights :
1. Indian refineries have ramped up diesel and jet fuel supplies to the EU after Russian oil imports to the country surged to record levels in the 2022-2023 fiscal year.
2. The EU has been using India as a "back door," given the sharp increase in New Delhi's imports of Russian oil since the bloc banned crude from the sanctioned country.
3. In 2022-2023, Indian refiners bought between 970,000 and 981,000 barrels of Russian oil per day, accounting for more than a fifth of the country's overall imports, which were between 4.5 million and 4.6 million barrels per day (bpd).
4. Discounted crude from Russia allowed Asian processing plants to boost production and sell oil products to the EU at a competitive price.
5. According to Kpler, India supplied an average of 154,000 barrels of diesel and jet fuel per day to the EU prior to the conflict in Ukraine.
6. Volumes surged to 200,000 bpd after the EU imposed an embargo on imports of Russian petroleum products in February, the data showed.
7. India's diesel exports to Europe jumped by between 12% and 16% to 150,000-167,000 bpd in the last fiscal year as Western customers avoided Russian products, bringing New Delhi's export share of the fuel to 30% up from 21-24% a year earlier.
8. Europe accounted for about 50% of India's jet fuel exports with France, Türkiye, Belgium and the Netherlands among the top European consumers of diesel refined in the Asian country.
Russian petroleum products are reportedly continuing to flow into the EU indirectly from Indian refiners, despite a ban on Russian oil imports imposed by the EU in July. The refiners are reportedly circumventing the ban by importing oil from other countries, including Azerbaijan and Kazakhstan, which are not subject to the restrictions.
The refiners are reportedly doing this by blending Russian oil with other oils and then exporting the product to the EU. This method of circumventing the ban has been going on for months and is likely to continue for the foreseeable future, as the EU has yet to come up with a permanent solution to the issue.
The refiners are reportedly doing this to avoid paying the high prices that are charged for Russian oil in the EU. The refiners are also reportedly using the Russian oil to fill up their own storage tanks, which is illegal under EU regulations.
The EU has expressed its displeasure with the refiners’ actions and has threatened to take action against them. However, the refiners are reportedly unlikely to change their behavior until the EU comes up with a permanent solution to the Russian oil embargo.
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