India has been the 4th largest refiner and 4th largest exporter of petroleum products since several decades and has a large refining industry, built through long term investments. India has 23 refineries, primarily serving domestic demand but is also a major exporter with products being exported to over 150 nations.
India has not sold any cheap Russian crude to anyone else. It has converted some part of the Russian crude (and hundreds of grades of other global crudes) into petroleum products and used most of the refined products for its citizens.
Refining crude and exporting fuels is how global supply chains function. After banning Russian crude, Europe relied on Indian diesel and jet fuel. That is not laundering, it is stabilising markets.
In fact, refining margins which are benchmarked globally went up in the immediate aftermath of the Russia- Ukraine crisis but came down very soon and have been at normal levels since long. Also, the Russian crude discounts came down significantly since long. The claims of super normal profits by refining entities are vastly exaggerated.
6. India now exports over 1 million barrels a day in refined petroleum—more than half the volume of Russian crude it imports. The proceeds flow to India’s politically connected energy titans—and directly into Putin’s war chest.
Out of the total imported crude oil (including Russian oil, which accounts for 30-35 percent of Indian’s import basket), the majority of the refined petroleum products approx. 70% are utilized in India to meet the domestic demand.
One of the private sector refineries of Reliance (out of their 2 refineries) was established in the Special Economic Zone (SEZ)since inception in 2006 and it is specifically meant for export.
The export or resale of refined Russian oil products was never subject to sanctions under the G7 price cap regime. It was only under the EU’s 18th Sanctions Package that certain restrictions were introduced on petroleum products derived from Russian crude.
Though India’s total export of Petroleum products has remained stagnant, the export of petroleum products to EU has marginally increased to 21 MMT in FY 2024-25, where as India’s refining capacity increased from 249 MMTPA in 2021 to 260 MMTPA currently.
Additionally, the EU importers could also demonstrate a self-moratorium on purchasing refined products from India, in case they so desired.
Crude oil and petroleum products are fungible and will flow according to market dynamics.
Even before the onset of the Russia-Ukraine conflict in February 2022, India had exported 99.2 MMT in FY 2021-22, 98.8 MMT in FY 2022-23, 107 MMT in 2023-24 and 88.25 MMT in 2024-24.
Thus, the export of refined POL form India is declining as the domestic consumption is increasing.
India exported 12.6 MMT (Valued US$ 8.8 billion) in FY 2021-22, 16 MMT (Valued US$ 15.6 billion) in FY 2022-23, 24 MMT (Valued US$ 19.2 billion) in FY 2023-24 and 21.1 MMT (Valued US$ 15 billion) in FY 2024-25.
The export to EU consists of mainly HSD and ATF with the Netherlands, France, and Belgium as the principal destinations. Notably, there has been no major shift in the destination profile of these exports, as the aforementioned three countries continue to be the primary importers.
7. While the United States pays to arm Ukraine, India bankrolls Russia even as it slaps some of the world’s highest tariffs on U.S. goods, which in turn punishes American exporters. We run a $50-billion trade deficit with India—and they’re using our dollars to buy Russian oil. They make a killing and Ukrainians die.
This is a hollow argument. The US runs trade deficits with China, the EU and Mexico. India’s 50 billion dollar deficit is small in comparison. At the same time India buys billions in US goods including aircraft, LNG, defence equipment and technology.
8. It doesn’t stop there. India continues to buy Russian weapons—while demanding that U.S. firms transfer sensitive military tech and build plants in India. That’s strategic freeloading.
No, how is India freeloading?
India is investing heavily in US partnerships. Jet engine co-production with GE, MQ-9 drones, QUAD and Indo-Pacific defence cooperation. India is the only major power actively countering China militarily in Asia. This directly benefits the US.
9. The Biden admin largely looked the other way at this madness. President Trump is confronting it. A 50% tariff—25% for unfair trade and 25% for national security—is a direct response. If India, the world’s largest democracy, wants to be treated like a strategic partner of the U.S., it needs to act like one. The road to peace in Ukraine runs through New Delhi.
India has consistently called for peace and diplomacy at the UN. Demanding that India sanction Russia at the cost of its own survival is hypocrisy when Europe still buys Russian gas and the US still buys Russian uranium.
India acted responsibly, followed global frameworks and kept oil markets stable. Without India, prices would have spiralled and Western economies would have faced a far greater crisis. Scapegoating India is propaganda, not policy.
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