EU Sanctions On Russian Crude Threaten India’s USD 15 Bn Petroleum Exports: GTRI

New Delhi, Jul 21 (KNN) India’s petroleum product exports to the European Union (EU), valued at USD 15 billion in FY25, could be significantly impacted as the EU enforces tighter sanctions on refined products made from Russian crude, the Global Trade Research Initiative (GTRI) has warned.

The EU’s 18th sanctions package — aimed at further restricting Russia’s energy revenues — includes a key provision banning the import of refined petroleum products made from Russian crude oil, even if processed in third countries.

This move is part of broader efforts to limit indirect revenue flows to Russia amid the ongoing geopolitical tensions.

According to GTRI, this measure largely exempts close allies such as the US, UK, Canada, and Switzerland, but will adversely affect countries like India, Turkey, and the UAE.

These nations have been refining Russian crude oil and supplying products like diesel, petrol, and jet fuel to European markets.

"India's USD 15 billion exports of petroleum products to the EU are now at risk due to the sanctions on refined products made from Russian crude," said Ajay Srivastava, Founder of GTRI.

He noted that the EU is directly targeting supplies routed through third countries, including India.

India’s petroleum exports to the EU dropped from USD 19.2 billion in FY24 to USD 15 billion in FY25 — a decline of 27.1 per cent — even before the latest sanctions fully come into effect.

During the same period, India imported USD 50.3 billion worth of crude oil from Russia, accounting for over a third of its total crude import bill of USD 143.1 billion.

Srivastava cautioned that while India’s trade with Russia remains within legal parameters, shifting political narratives in Western capitals are increasing scrutiny.

“As energy ties with Russia deepen, India will have to carefully balance economic pragmatism with growing geopolitical pressures,” he added.

(KNN Bureau)