India has become the bloc’s top fuel supplier by re-exporting Russian supplies, the outlet says
The EU continues to fuel its economy with Russian oil despite sanctions, Bloomberg reported this week. Member states are now said to be purchasing the sanctioned fuel via India.
In December, the EU, G7 and allied nations imposed an embargo and $60-a-barrel price cap on Russian crude and later introduced similar restrictions on petroleum product exports.
But India has not adhered to the ban and has instead increased its purchases of Russian oil which Moscow is offering at discounted prices.
In 2022-23, 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), Kpler and Vortexa data shown.
Not only has India become the biggest buyer of oil from Russia since the ban came into force, but New Delhi is now on course to become Europe’s biggest supplier of refined fuels.
Indian processing plants grab cheap Russian oil, turn it into fuel and resell it to the EU at a competitive price.
“Russian oil is coming back to Europe despite all the sanctions and India’s increased fuel exports to the west is a good example of that,” he added. a senior crude oil analyst at Kpler, Viktor Katona, told Bloomberg. “With India absorbing so many Russian barrels, it’s inevitable,” he added.
Fuel imports from India to the EU are expected to exceed 360,000 bpd, exceeding shipments from Saudi Arabia, according to Kpler.
Diesel fuels large sectors of the European economy, more than a third of which came from Russia before the conflict in Ukraine. Now that the EU has stopped accepting refined products from Moscow, the bloc must source fuel from alternative suppliers, which means higher shipping costs and tighter competition between refineries, said the point of sale.
Meanwhile, Russian crude oil arrivals in India are expected to top 2 million bpd in April, accounting for nearly 44% of the country’s total crude imports, according to Kpler data.
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