India's fuel exports brace for EU's Russia sanctions plans

The conflict in West Asia and its impact on crude oil prices is taking attention away from Europe planning fresh Russian sanction measures, which like the European Union's carbon tax on imports threaten to hurt India's $63 billion in annual petroleum product exports, according to industry sources and Customs and shipping data.

- S DINAKAR

Fuel exports constituted 14 per cent of India's total exports in FY25, according to calculations based on Customs data. Overall petroleum product exports were as high as $84.1 billion in FY24.

The European Union (EU) proposal to bar imports of diesel, gasoline and jet fuel derived from Russian crude oil processed in Indian refineries is of concern because it does not require Washington or the G7 bloc's cooperation for implementation—it's Brussels' call and will be taken up later this month under the 18th Russia sanctions package.

The EU has had little success in cooperating with US President Donald Trump's administration in participating in recent Russian sanction measures to show support for Ukraine and has proceeded unilaterally.

India does not recognise EU or UK sanctions on Russia, said a government official.

India's Customs data shows diesel, petrol, jet fuel and naphtha together accounted for over $50 billion in exports in FY25, according to Customs data, of which Europe accounted for around $19 billion.

Reliance Industries, which accounts for over 70 per cent of India's exports of petroleum products, may be the most affected, shipping data shows.

India exported around 368,000 barrels per day (bpd) or 29 per cent of its fuels to Europe in May; a fifth of all fuel exports in the entire 2024 calendar year was shipped to Europe.

Reliance accounted for 89 per cent of all fuels exported to Europe at 213,000 bpd in calendar 2024, according to data from market intelligence agency Kpler.

Reliance declined to comment.