Title: India sends diesel to China for 1st time since 2021 amid US tariffs & EU sanctions: Report
In a significant development, India has sent a rare cargo of diesel to China for the first time since 2021, amid a backdrop of US tariffs and EU sanctions. According to a report by Bloomberg, a shipment of around five lakh barrels of diesel from Russia-linked Indian refiner Nayara Energy, which controls India’s second-largest refinery, is headed to China’s Zhoushan.
This development comes as a surprise, given the complex trade dynamics between India, China, the US, and the EU. The cargo was initially bound for Malaysia but made a U-turn towards China, according to the report. This decision is likely to raise eyebrows in Washington and Brussels, given the ongoing trade tensions and sanctions.
Nayara Energy, which is controlled by the Russian billionaire family, the Ruia, has been facing sanctions from the EU due to its alleged ties to Russian President Vladimir Putin. The EU has imposed sanctions on Nayara, citing concerns over its potential involvement in Putin’s regime. The US, too, has imposed 50% tariffs on Indian exports, which has made it difficult for Indian companies to do business with the US.
The decision to send diesel to China is a significant shift in India’s trade strategy, particularly given the country’s efforts to boost its economic ties with the US. India has been trying to reduce its dependence on Chinese imports and has been exploring new trade opportunities with the US. However, the recent developments suggest that India is willing to maintain its trade relationships with China, despite the ongoing tensions.
The diesel shipment is a rare one, given the ongoing trade tensions between India and China. The two countries have been locked in a bitter trade war, with both sides imposing tariffs on each other’s goods. The trade war has impacted several Indian industries, including textiles, pharmaceuticals, and electronics.
The decision to send diesel to China is likely to be seen as a strategic move by Nayara Energy to maintain its market share in the Chinese market. China is one of the largest markets for diesel in the world, and Nayara Energy has been looking to expand its presence in the country.
The development is also significant given the ongoing energy crisis in India. India has been facing a severe energy crisis, with power plants struggling to produce enough electricity to meet demand. The country has been relying heavily on imported diesel to meet its energy requirements, and the decision to send a cargo of diesel to China is likely to exacerbate the energy crisis.
The Indian government has been trying to address the energy crisis by increasing domestic production and reducing imports. However, the decision to send diesel to China is likely to undermine these efforts and increase India’s reliance on imported diesel.
The development is also likely to raise concerns about India’s commitment to reducing its carbon footprint. India has been a vocal advocate for climate action and has committed to reducing its carbon emissions to net-zero by 2070. However, the decision to send a cargo of diesel to China is likely to increase India’s carbon footprint and undermine its climate goals.
In conclusion, the decision to send a rare cargo of diesel to China is a significant development in the complex trade dynamics between India, China, the US, and the EU. The decision is likely to raise eyebrows in Washington and Brussels, given the ongoing trade tensions and sanctions. The development is also likely to have significant implications for India’s energy crisis and its commitment to reducing its carbon footprint.
News Source:
https://www.ndtvprofit.com/amp/world/india-sends-rare-diesel-cargo-to-china-as-nayara-faces-sanctions
