Indian refiners are opening up to new markets. Thanks to the volumes of Russian oil purchased, they are exporting more and more diesel to Europe, which has banned the direct import of processed Russian products since February 5.
The scenario was considered before the implementation of the Russian diesel embargo. So it’s not a surprise, but a confirmation of what many saw coming. Because since February 5, Europe has no choice, it must replace every day half a million barrels of diesel that it previously bought in Russia.
India, the world’s fourth largest refiner
India and its 23 refineries quickly established itself as a supplier of choice for European countries and in particular France, Turkey, Belgium and the Netherlands. And for good reason: the Indian refineries which were supplied until then in the Middle East and in particular in Iraq are increasingly supplied with Russian oil. Nearly half of the oil imported by India’s second largest refiner – Reliance and Nayara, 49% owned by Russian energy giant Rosneft – is now of Russian origin, according to data from the firm. Vortexa analyst.
A godsend since Russian oil is sold at a knockdown price, which allows Indian refineries to be more competitive and take new market shares in Europe.
India’s petroleum product exports to the EU averaged 154,000 bpd – diesel and jet fuel – before Ukraine’s invasion, rising to 200,000 bpd since early February, cabinet says Kper. 30% of total Indian diesel exports now go to Europe, compared to just over 21% previously.
Oil has no smell
These figures seem to confirm the laundering of Russian petroleum products by India, as by China, even if this will remain difficult to prove. The adage that oil has no smell is even better for diesel, which is very difficult to trace.
Products refined in India are not declared as originating from Russia. Their importation is therefore not contrary to European rules.