EU Sanctions Impact on Indian Refiners

The European Union's latest sanctions package against Russia, implemented on July 18, targets refined products derived from Russian crude oil, with significant implications for Indian refiners. According to an ICRA report, Indian exports of petroleum products to the EU, valued at $14.3 billion in fiscal year 2025, could be at risk.

Shift in Global Oil Dynamics

India has emerged as a key processor of Russian crude, benefiting from price discounts. However, the EU's reduction of the crude oil price cap to $47.6 bbl and the introduction of a dynamic pricing mechanism may lead to wider discounts, affecting Indian refiners' market opportunities.

Sanctions Details and Global Implications

The sanctions prohibit EU entities from providing transport or insurance services for Russian oil traded above the set limit and add 105 vessels to the restricted list. Despite these measures, global crude oil prices have remained stable, indicating minimal expected supply disruptions.