India's Fuel Exports Surge Amid Russian Oil Refining Loophole

India's export of diesel to the EU rose 58% in early 2024, likely via refining discounted Russian oil. As Europe caps Russian crude prices and imposes import embargoes, India's refining loophole advantages its fuel trade. This highlights EU dependencies and ongoing Russian crude revenues.

In a remarkable shift, India's export of diesel and other fuels to the European Union surged by 58% in the early months of 2024. This growth is largely attributed to processing discounted Russian oil, amid a global reworking of crude oil trade rules.

The European Union, alongside G7 nations, aimed to curtail Russia's revenue stream supporting its military activities in Ukraine. However, their price cap policy inadvertently opened a loophole by not addressing refined oil products derived from Russian crude oil.

India exploited this gap, becoming one of the largest buyers of Russian crude oil, significantly enhancing trade relations with the EU amidst European reluctance to source directly from Moscow.

(With inputs from agencies.)