Indian Refiners Unfazed by EU's New Russia Oil Sanctions

Fuel export to Europe is already on decline after record 2023

- S DINAKAR

Indian refiners are relatively unconcerned by the European Union's (EU) new round of sanctions on exports of Russian oil and the banning of purchases of fuels made from Russian grades, according to conversations with state-owned and private refiners, industry participants, and exclusive ship-tracking data.

Private-sector refiners—against which the latest EU sanctions package is primarily directed—such as Nayara, have already found ways to circumvent these sanctions, market intelligence data shows. Also working in favor of Indian refiners and banks is New Delhi's strong stance against the EU's 18th sanctions package, along with a parallel move by the North Atlantic Treaty Organization to impose tariffs on India, calling them out as "double standards."

There are three key elements to the EU's 18th package of economic and individual restrictive measures: Bringing Russian state-owned Rosneft's 400,000 barrels per day (bpd) Nayara refinery in Gujarat under sanctions; barring EU imports of fuels made from Russian oil; and lowering the price cap on Russian oil, making it more difficult to access Western shipping services.

The EU has banned imports of refined petroleum products made from Russian crude oil when exported from any third country, except Canada, Norway, Switzerland, the United Kingdom, and the United States.

More broadly, India's fuel exports to Europe, mainly diesel and jet fuel, have been on a downward trajectory after reaching a record 318,000 bpd in 2023, according to data accessed by Business Standard from maritime intelligence agency Kpler.