According to data from analytics firm Kpler, India has become Europe’s largest supplier of refined fuels this month, while also buying record amounts of Russian crude.
Europe’s reliance on Indian crude oil products has grown since the ban on Russian oil, with Europe’s refined fuel imports from India set to surge above 360,000 barrels a day. This development is a double-edged sword for the European Union.
On the one hand, the EU needs alternative sources of diesel since it has cut off direct flows from Russia, which was previously its top supplier. On the other hand, it ultimately boosts demand for Moscow’s barrels, and means extra freight costs. Meanwhile, Russian crude oil arrivals to India are expected to surpass 2 million barrels a day in April, representing almost 44% of the nation’s overall oil imports, according to Kpler data.
Russia emerged as a major supplier to India for the first time in 2022-23 (FY23) after it started giving oil at discounted rates amid the Ukraine war.