The US-led G-7 grouping may sanction countries that turn discounted Russian crude oil into diesel, petrol and jet fuel – known as ‘clean products’ in the parlance – and then re-export these products to European consumers at full price. India, along with China and Turkey, may be the next targets.
It is a successful industry that Reliance Industries mostly controls. According to figures from the oil ministry, India exported all petroleum products for $58 billion in FY23, making up 13% of all exports by value. Additionally, the government receives its fair share from windfall taxes on petroleum exports.
After the EU banned imports of Russian oil goods in February, European consumers resorted to China and India. and Turkey is a potential source of gasoline. In volume terms, Europe took in close to 20% of India’s clean product exports between February and mid-May. That amounted to 11 percent.
