Why did India become important for Europe, earlier Russia was a compulsion for the West

Russia-Ukraine: Ever since the war between Ukraine and Russia started, India's trade and strategic importance with Europe has increased manifold. After the sanctions imposed on Russia, India has proved its importance by emerging as an important fuel supplier to European countries. India is not only buying cheap oil from Russia, but is also making huge profits by refining it and sending it to Europe. This situation has given India a new and strong position in the global energy market.

India's diesel exports increased

According to reports, the export of fuels like diesel from India to the European Union has increased by 58 percent in the first three quarters of 2024. The main reason for this is the increasing supply of cheap crude oil coming from Russia, which is being refined and sold in Europe. Due to the sanctions imposed on Russian oil, European countries had limited options, and in such a situation India took advantage of this opportunity.

In December 2022, the European Union and G7 countries imposed sanctions on Russia, imposing price caps and bans on imports of its crude oil. However, taking advantage of the loopholes in Russia's refined fuel policy, India bought crude oil from Russia and started refining it and sending it to Europe. This gave India profits in both directions - buying cheap oil and selling expensive refined fuel.

Increasing supply of crude oil from Russia

After the Ukraine war, India rapidly increased its crude oil imports from Russia. Before the war, the amount of oil India bought from Russia was less than one percent of its total imports. But after the war, this purchase has increased to about 40 percent. India has now become the second largest crude oil buyer from Russia. This has not only strengthened India's energy security but is also helping to meet Europe's energy needs.

India's refinery capacity

India has several major refinery units that help supply fuel to Europe. Reliance Industries Limited's Jamnagar Refinery, Nayara Energy's Vadinar Refinery and Mangalore Refinery and Petrochemicals Limited (MRPL) are India's major refineries that export refined oil. These refineries process crude oil from Russia and convert it into high-quality fuel products like petrol and diesel, which are in high demand in European countries.

India's growing global role

After the war between Russia and Ukraine, India made proper use of its diplomatic and trade capabilities. India started supplying fuel to European countries, playing an important role in global energy supply. This has not only benefited India economically, but it also reflects the country's growing global role.

This business model of India buying cheap oil from Russia and refining it and sending it to Europe is not only beneficial for India, but it is also a relief for European countries, which do not want to depend on oil imports from Russia.

Conclusion

India has taken a smart and strategic step to become the largest supplier of fuel to Europe. Buying cheap oil from Russia, refining it and exporting it to Europe has proven to be a successful and profitable business model. This move has strengthened India's global position, and in the future too India can emerge as an important player in the field of energy.