Crude Oil Exports / EU played a big 'game'! India's oil export worth Rs 1.3 lakh crore is in danger

India's petroleum product exports are under threat due to the new sanctions by the European Union. According to GTRI, the ban on refined products from Russian crude oil could affect India's exports worth $15 billion. India will have to strike a balance between geopolitical pressure and economic needs.

Crude Oil Exports: Economic think tank Global Trade Research Initiative (GTRI) has warned that India's export of petroleum products worth US$15 billion is in serious danger due to sanctions imposed by the European Union (EU) on the import of refined Russian crude oil from third countries. The 27 countries of the European Union have taken several steps to reduce Russia's income from the oil and energy sector in their 18th sanctions package, including a ban on refined petroleum products made from Russian crude oil and imported through third countries.

Effect of sanctions

According to the GTRI report, this ban will affect countries that are refining Russian crude oil and exporting products like diesel, petrol and jet fuel to Europe. This includes countries like India, Turkey and the United Arab Emirates. GTRI founder Ajay Srivastava said that India's US$15 billion petroleum exports to the European Union are in danger. India exported petroleum products worth US$19.2 billion to the EU in FY24, but this has fallen by 27.1% to US$15 billion in 2024-25.

India's Russian oil imports

The report also mentioned that India imported crude oil worth US$50.3 billion from Russia in FY25, more than a third of its total crude oil imports of US$143.1 billion. This reflects India's growing dependence on Russian oil. However, Srivastava said the political implications of trade with Russia in Western countries are changing. He warned that India will have to strike a balance between economic pragmatism and geopolitical pressures.

Global scenario and challenges

The new sanctions exempt only a few select countries like the US, UK, Canada and Switzerland. This means that third countries like India, which refine Russian crude oil and export it to Europe, will now be subject to these sanctions. This is a big challenge for India, as the EU is a major market for India's petroleum products.

"India is doing legitimate trade with Russia, but as energy ties deepen, India may face geopolitical pressures," Srivastava said. In this situation, India may need to change its energy policy and export strategy to keep its position strong in global trade.