Bad news for India, UAE, Turkey as European Union imposes new sanctions on Russia, Fuel price likely to..., Modi govt now plans to...
This step will also adversely affect countries like Turkey and the United Arab Emirates (UAE), in addition to India, according to GTRI. These countries had been buying cheap crude oil from Russia, refining it, and then exporting products like diesel, petrol, and jet fuel (ATF) to Europe. GTRI founder Ajay Srivastava stated that these new EU rules will create challenges for countries like India, which have been refining Russian oil and exporting it to Europe. Here are some of the key details: India's USD 15 billion petroleum product exports are at risk due to the EU's new sanctions.
In the financial year 2023–24, India exported petroleum products worth USD 19.2 billion to the EU, according to GTRI.
In 2024–25, this figure dropped by 27.1 percent to USD 15 billion.
The think tank stated that in the financial year 2024–25, India imported crude oil worth $50.3 billion from Russia.
This accounts for more than one-third of India's total crude oil import bill of $143.1 billion. Is India's trade with Russia legal?
India is conducting a legal and legitimate trade with Russia, according to Ajay Srivastava, founder of GTRI. India will have to strike a balance between economic practicality and geopolitical pressure, as energy ties between both countries have deepened. Now, the moot question is, what is EU's main motive behind these sanctions?
The main aim of the EU's new sanctions is to weaken Russia's economy. Due to the Russia-Ukraine war, the EU has imposed several economic sanctions on Russia. These sanctions are intended to prevent Russia from raising funds for the war. India purchases crude oil from Russia to meet its energy needs. India is the third-largest oil consumer in the world. It imports 85 percent of its oil requirements. Russia is a key supplier of crude oil to India. How Is India Dealing with Current Situation? The European Union's sanctions could have an adverse impact on India's economy.
India may now have to procure crude oil from alternative sources in order to export petroleum products to the EU.
The Indian government is focusing on strengthening trade relations with other countries
India is making efforts to increase domestic oil production.
Ajay Srivastava said, 'The EU's new sanctions pose a challenge for countries like India. To ensure its energy security, India will need to adopt a balanced approach.' This means that India will have to maintain its trade relations with Russia while also strengthening its ties with Western countries.
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