European countries are turning to New Delhi for petrochemicals after US-led sanctions cut them off from Russian energy supplies
India’s exports of refined oil products to Europe have surged by 2,539 times since 2018, according to news website The Print, citing data from the Ministry of Commerce and Industry.
The dramatic increase is attributed to post-COVID-19 supply chain challenges in Europe and India’s heightened imports of discounted Russian crude oil following the outbreak of the Ukraine conflict.
In the 2018-2019 financial year, European countries imported 9,740 metric tons of petrochemicals from India. By 2023-2024, the figure had skyrocketed to 24.73 million tons. In terms of value, exports grew by 3.5 times, from $5.9 billion in 2018-2019 to $20.5 billion in 2023-2024.
The Netherlands emerged as the leader among 17 European importer nations, purchasing 24.73 million tons of fuel from India in 2023-2024. With shipments via Rotterdam, Europe’s largest seaport, the Netherlands serves as a key supplier to markets across the region.
The export volume of India’s petroleum products to Europe began to surge during the Covid-19 pandemic in 2020-21 as Indian refiners bought cheap crude and sold value-added fuel, mostly diesel, an unnamed industry leader told The Print.
Demand spiked again in 2022, after the outbreak of the Russia-Ukraine conflict and imposition of sweeping sanctions on Moscow by the US and its allies.
India has not supported the sanctions despite pressure from Western partners, and has ramped up its purchases of Russian oil, recently overtaking China as Moscow’ s largest buyer. In the financial year 2022-2023, Indian exports to Europe surged to nearly 17 million tons, valued at $16.3 billion, establishing New Delhi as a leading exporter of refined fuels to the region.
Indian officials have repeatedly stated that the country’s decision to buy Russian oil, despite Western pressure, has helped prevent a global energy crisis. Petroleum Minister Hardeep Singh Puri emphasized in a recent interview with RT that without Russian oil on the market, global prices would have hit $250-$300 per barrel.
India’s Russian oil exports to India peaked in July 2023, and recent data indicate a 14.5% decline in August, dropping to 1.80 million barrels per day (bpd) due to maintenance shutdowns at some refineries and diminished demand. Overall oil imports also fell accordingly, with Russian crude still constituting 39.9% of India’s oil imports for the month. An uptick is expected in October in anticipation of India’s festival season.
Trade between India and Russia rose to around $65 billion last year, largely on the back of Indian purchases of Russian oil.
