Petroleum exports to European countries increase by 58%, chemicals exports could be worth $31 billion

New Delhi| Exports of fuels such as diesel from India to the European Union have increased by 58 per cent on an annual basis in the three quarters of the current financial year. There is a large share of crude oil coming from Russia, which is being refined and sent to Europe. This export is coming from Jamnagar, Vadinar (Gujarat) and Mangalore Refinery.

In December 2022, the EU and G7 countries imposed price caps and restrictions on Russia’s crude oil imports, imposing sanctions on it. However, due to lack of clarity in the rules, it was believed that countries not imposing sanctions could import Russian crude oil and convert them into refined products and export them to countries imposing sanctions.

According to the Center for Research on Energy and Clean Air (CREA), India has become the second largest buyer of Russian crude oil after the Russia-Ukraine war. The country’s imports from Russia before the war amounted to less than one percent of total imported oil. Post-war procurement has increased to about 40 per cent.

India could achieve the chemical export target of $31 billion in the current financial year. Last year it was $30 billion. Kemexil believes that there is good demand for chemicals manufactured in India in countries like Brazil, America, Japan and Saudi Arabia. Raghuveer Kini, director general of Kamexil, said total exports of the chemical rose 4.57 percent to $14.1 billion during April-September. Last year, exports were reduced due to drought in Brazil. But this year the situation is good. We expect growth. Let us tell you that India exports chemicals worth one billion dollars to Brazil annually.

The report said Europe typically imported an average of 1,54,000 barrels per day (bpd) of diesel and jet fuel from India before Russia’s invasion of Ukraine. Now it has almost doubled. Over a third of India’s oil products exports to approved countries were sourced from Russian crude in the 13 months since the oil price cap came into effect in December, 2022. India bought two billion euros worth of crude oil from Russia in October, down from 2.4 billion euros in September.