New Delhi, July 22 (V7N) – Indian private refiners, who have benefited greatly from importing discounted Russian crude, are now forced to adjust their export strategies following the European Union’s latest sanctions targeting Russian oil products. The EU’s 18th sanctions package prohibits imports of refined petroleum products derived from Russian crude that originate from third countries, impacting major Indian refiners like Reliance Industries and Nayara Energy.

Russia remains India’s largest crude oil supplier. Indian refiners have leveraged lower-priced Russian oil, refining and exporting substantial volumes—particularly diesel and jet fuel—to European markets. Reliance, for instance, shipped nearly 2.83 million barrels of diesel and 1.5 million barrels of jet fuel monthly to Europe during the first seven months of 2025, representing about 30% and 60% of its exports of these products, respectively. Nayara Energy exports over four million barrels of refined products monthly, with jet fuel primarily destined for Europe.

In response to the sanctions, Indian refiners are expected to increasingly depend on traders to navigate market restrictions. Traders may redirect diesel supplies by swapping Indian cargoes with Middle Eastern shipments and utilizing floating storage facilities in regions like the Middle East and West Africa for re-export. Jet fuel exports could be diverted to domestic or Asian markets.

Nayara Energy condemned the EU sanctions as “unjust and unilateral,” while the Indian government also expressed opposition to the restrictions. Meanwhile, Indian state-owned refiners such as Mangalore Refinery and Petrochemicals Ltd (MRPL) anticipate minimal impact, as their exports mainly target Asian buyers through tender processes, without direct sales to European customers.

MRPL Managing Director M. Shyamprasad Kamath confirmed that diesel exports, sold through trader-managed tenders, are unlikely to face difficulties due to the sanctions.

Industry experts caution that these regulatory changes will add complexity and raise costs for both producers and consumers. European fuel prices may increase ahead of the winter season as supply chains adjust.

News Source: Reuters.......

END/WD/SMA/