And India is one of the countries that has bought the most Russian oil in the last year, following the imposition of a series of economic sanctions on Moscow, mainly aimed at suppressing the Russian energy sector, because it generates the largest revenue in the country.
These measures, which the European Union intends to take, are part of a set of broader sanctions likely to target third countries to boost trade with Russia, including India and China, in addition to an annex targeting to recall certain countries and products.
And Russia previously announced that its oil exports to India had increased 22 times in 2022, a sign of its transformation into giants of the Asian continent amid the conflict in Ukraine.
How does Europe think?
The bloc understands that Indian refiners are buying large quantities of Russian crude oil before it is turned into fuel to be sold in Europe, and the European Union must act to stop this.
That India buys Russian oil, it is normal (…) But if they use that to become a center where they refine Russian oil and sell us by-products, then we must act.
India has become one of the biggest buyers of Russian crude since the war in Ukraine, its refiners raking in big profits buying the now-banned low-cost crude from the European Union, before selling the fuel to its normal price to Europe.
New Delhi has come under fire from supporters of tougher sanctions on Russia, which they say has allowed Moscow to continue earning large revenues from its oil sales.
Borrell raised the issue of buying Russian oil and then returning to Europe during his meeting with Indian Foreign Minister S Jaishankar.
Indian Prime Minister Narendra Modi is also expected to come under pressure from G7 leaders at a summit in Japan where circumventing sanctions will be a major talking point.
Indian refineries use crude imported from several different countries, including Russia, which makes it difficult to determine the exact origin of a barrel of diesel or gasoline.
EU sanctions could target buyers of Indian refined fuel that is believed to be derived from Russian crude.
Last March, the Russian oil giant Rosneft announced that it had signed a contract with an Indian partner to “significantly increase” Russian oil shipments.
According to data from the Indian Ministry of Commerce, Russia last year for the first time in its history became one of India’s top five trading partners, as the volume of trade between the two countries s amounted to $38.4 billion.
India is on track to become Europe’s biggest supplier of refined fuel this month, while buying record amounts of Russian crude, according to data compiled by Bloomberg.
Difficulty in tracking shipments For his part, the international energy adviser, Amer Al-Shobaki, believes, in statements to “Sky News Arabia”, that:
Although India is a major gateway for the sale of Russian petroleum products, it is very difficult to track shipments of Russian petroleum once it has been refined.
Al-Shobaki identified the consequences of the expected European measures towards India on a number of points, saying:
It is clear that Russian oil leaks to European markets via refineries located in India, but it is also imported from a number of other countries, and it is therefore difficult to distinguish whether oil derivatives exported from India are of Russian origin or not.
There are measures to curb European buyers, as well as discussions that will take place between EU officials and the Indian government to ask them how to sell Russian oil and its products from India to Europe, and I think oil buyers will be responsible in Europe.
Admittedly, this is what has actually contributed to the current oil prices enjoyed by the European Union, as the increased inflow of Russian oil and its products to markets has recently contributed to the decline in a large part of oil prices, except for fears of economic recession.
Since the European bloc has taken serious decisions concerning Russian oil sold via India, Russia will lose a market, whatever it is through which Russian oil and its products are resold, and it is a market of consumption which has become the acquirer of about a third of Russian oil exports, and therefore if Russia does not find other markets, this will of course affect oil prices.
India benefited greatly from this, as Indian companies benefited from lower purchase prices and a discount of up to $30 per barrel, reaping huge profits from refining.
However, Europeans will find it difficult to obtain petroleum products and will resort to other markets, which could push up the prices of these products.
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