Official records reveal a significant surge in Germany's imports of refined oil products from India during the initial seven months of this year. This surge, amounting to 451 million euros (approximately $480 million), is a striking escalation compared to the mere 37 million euros spent during the same period the previous year, as reported by Germany's national statistics agency, Destatis.
This remarkable twelve-fold increase can be attributed, in large part, to India's pivot towards Russian crude following Moscow's incursion into Ukraine in February of 2022. The fuel exports from India to Germany primarily consisted of gas oils earmarked for the production of diesel or heating oil, according to Destatis.
Drawing attention to the fact that these products are derived from crude oil, Destatis further pointed out that, according to the UN Comtrade database, India has substantially augmented its intake of crude oil from Russia since the commencement of the conflict.
In light of the ongoing conflict, Western nations have imposed a series of sanctions on Russia, including a European Union embargo on maritime oil shipments from the country. In tandem with its G7 allies, the EU also implemented a ceiling price of $60 per barrel for Russian crude destined for other parts of the globe. This strategic move has afforded India the opportunity to acquire discounted crude from Russia, subsequently refining it for resale to European clientele.
While these transactions fall within the bounds of legality, skeptics argue that they constitute a surreptitious channel for Russian oil, thereby undermining the efficacy of the sanctions designed to deprive Moscow of the financial resources fueling its war endeavors. In a blog post penned in May, the EU's foreign policy chief, Josep Borrell, acknowledged this conundrum. He articulated, "We in the EU don't buy Russian oil, but we buy the diesel obtained by refining this Russian oil somewhere else. This has the effect of circumventing our sanctions." Borrell added, "All this does also raise moral issues."
