Ukraine is restricting imports of diesel from India due to India’s continued purchases of Russian crude, which holds about a third of total Indian oil imports.
Effective October 1, Ukraine will restrict imports of Indian diesel and will check samples of the diesel in laboratories to detect the presence of components typical of Russia’s crude grades, according to Ukrainian energy consultancy Enkorr cited by Reuters.
Indian diesel accounted for about 18% of all Ukrainian diesel imports in August, according to Enkorr.
Ukraine has to import fuel as Russia has been attacking Ukrainian fuel depots and refineries. But Kyiv isn’t keen to import fuel from India if it is processed from Russian crude.
India and China are the main importers of Russia’s crude oil, supporting the Kremlin’s energy export revenues.
With difficult U.S.-India trade talks, the Trump Administration has singled out India to punish as a buyer of Russian crude.
Most recently, U.S. President Donald Trump has reportedly urged U.S. partner countries in the G7 group to impose tariffs on China and India in punishment for their continued energy trade with Russia.
Russia and India, however, have talked up their strategic partnership with high-level meetings and visits since the U.S. tariff threat, and have reiterated their strategic alliance and cooperation in the energy sector—a sign that India isn’t giving up on Russia’s cheap crude.
Despite the hiked U.S. tariff, Indian refiners are set to raise their imports by between 150,000 barrels per day (bpd) and 300,000 bpd in September, or up by 10-20% compared to August volumes, according to traders and analysts.
The discount of Russia’s flagship Urals crude blend for Indian buyers has widened to between $3 and $4 per barrel amid continued pressure from the United States on India to force it to stop buying Russian crude. India continues to buy Russian crude, also incentivized by the wider discounts compared to the minimal discounts in June and July.
By Charles Kennedy for Oilprice.com
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