India's Petroleum Product Exports to EU at Risk Due to EU Sanctions on Russian Oil Refining

Strategic Insights -

India has been a significant supplier of petroleum products to the European Union (EU), with exports valued at $19.2 billion in FY24. However, the 18th package of sanctions by the 27-nation EU, aimed at curbing the revenues of Russia's oil and energy sector, has put India's petroleum product exports to the EU at risk. According to the Global Trade Research Initiative (GTRI), a central component of the package is a ban on the import of refined petroleum products made from Russian crude and exported via third countries, excluding only a select few allies. This measure will hurt nations like India, Turkey, and the UAE, which have been refining Russian crude and selling diesel, petrol, and jet fuel to Europe.

Key Takeaways:

  • India exported $19.2 billion worth of petroleum products to the EU in FY24, but this dropped by 27.1 per cent to $15 billion in 2024-25.
  • The EU's ban on refined petroleum products made from Russian crude oil will hurt India's exports, as India has been refining Russian crude and selling diesel, petrol, and jet fuel to Europe.
  • GTRI notes that India imported $50.3 billion of crude oil from Russia in FY2025, over a third of its total $143.1 billion crude bills.
  • The EU sanctions will affect several countries, including India, Turkey, and the UAE, which have been refining Russian crude and exporting petroleum products to Europe.
  • India's economy will be impacted by the decline in petroleum product exports to the EU.
  • The sanctions will also affect the global supply of petroleum products, potentially leading to price increases.

Statistics:

  • India's petroleum product exports to the EU dropped by 27.1 per cent from $19.2 billion in FY24 to $15 billion in 2024-25.
  • $50.3 billion: The amount of crude oil imported by India from Russia in FY2025.
  • $143.1 billion: The total amount of crude oil imported by India in FY2025.
  • $19.2 billion: The value of India's petroleum product exports to the EU in FY24.
  • 27.1 per cent: The decline in India's petroleum product exports to the EU from FY24 to 2024-25.

Sources:

  • Accord Fintech Pvt. Ltd.
  • Global Trade Research Initiative (GTRI)
  • Contify.com