Circumvention of sanctions through Indian refinement of Russian oil (6do encyclopedia)

Circumvention of sanctions through Indian refinement of Russian oil refers to the practice of refineries in India processing Russian crude oil that has been sanctioned by the United States and European Union. This practice allows Indian refineries to continue sourcing crude oil from Russia, despite the sanctions imposed on Russia’s oil exports.


The Russian oil industry is one of the largest in the world, with Russia being the second-largest producer of oil after the United States. In recent years, the US and European Union have imposed sanctions on Russia to discourage the country’s aggressive behavior towards Ukraine. These sanctions target Russia’s oil industry and restrict the export of crude oil to the US and Europe.

As a result of these sanctions, Russian crude oil has found its way to India, where refineries are processing it to meet the country’s growing demand for oil. This practice has been viewed as a way for India to circumvent US and EU sanctions on Russia.

Indian refineries and Russian crude oil

India is one of the largest importers of crude oil in the world, relying on imports to meet over 80% of its oil demand. In recent years, Indian refineries have been buying crude oil from Russia, making it one of the country’s top crude oil suppliers. Russian oil accounts for about 14% of India’s total crude oil imports.

Russian crude oil is cheaper than oil from other sources due to its quality and proximity to India. In addition, Russian oil is priced in US dollars, making it more attractive to Indian refineries dealing in dollars. However, the imposition of US and EU sanctions on Russian crude oil has made it difficult for Indian refineries to continue sourcing oil from Russia.

Refining Russian crude oil in India

To circumvent the sanctions on Russian crude oil, Indian refineries are refining the oil in their own facilities. This means that while the sanctioned crude oil cannot be sold directly to the US and Europe, it can still be processed in India and sold on the global market.

Indian refineries have the technological capability to process different types of crude oil, including Russian crude, ensuring that the quality of the end product meets global standards. The refining process involves removing impurities and converting the crude oil into usable products such as gasoline, diesel, and jet fuel.

The refined products are then sold on the global market at competitive prices, with significant portions being exported to the US and Europe. This practice has raised concerns among US and European officials, who argue that it undermines their efforts to isolate Russia.

International reactions

The practice of refining Russian crude oil in India has been criticized by the US and European Union officials, who see it as a way for India to bypass the sanctions on Russian oil exports. The US and EU officials have expressed their concerns to the Indian government, calling on it to stop processing sanctioned Russian crude oil.

However, the Indian government has defended the practice, arguing that it does not violate any international laws. Indian officials have pointed out that the country’s refineries process various types of crude oil from different countries, including sanctions-hit countries such as Iran and Venezuela.


Circumvention of sanctions through Indian refinement of Russian oil is a controversial practice that has raised concerns among US and European officials. While the Indian government defends the practice, the US and European Union officials view it as a way for Russia to evade the sanctions imposed on its oil exports. The practice has also provided India with an opportunity to secure cheaper crude oil supplies and boost its refining capacity. However, the long-term implications of the practice remain to be seen, with US and European officials likely to continue to monitor the situation closely.

6do Encyclopedia represents the inaugural AI-driven knowledge repository, and we cordially invite all community users to collaborate and contribute to the enhancement of its accuracy and completeness.
Should you identify any inaccuracies or discrepancies, we respectfully request that you promptly bring these to our attention. Furthermore, you are encouraged to engage in dialogue with the 6do AI chatbot for clarifications.
Please be advised that when utilizing the resources provided by 6do Encyclopedia, users must exercise due care and diligence with respect to the information contained therein. We expressly disclaim any and all legal liabilities arising from the use of such content.

EU urged to crack down on sanctions-dodging India reselling Russian oil

South China Morning Post

23-05-16 09:43

The EU's foreign policy chief, Josep Borrell, has called for the EU to clamp down on the import of Russian oil resold by India as refined fuel; the diesel and petrol could be considered a circumvention of sanctions. The EU has already banned Russian oil orders, so access to cheap Russian crude has allowed Indian refineries to export refined products competitively to Europe and take a greater market share. According to ship-tracking data from Kpler, Reliance Industries and Nayara Energy were the key exporters of refined fuels and buyers of Russian oil.