Title: India sends diesel to China for 1st time since 2021 amid US tariffs & EU sanctions: Report
India has sent a rare shipment of diesel to China for the first time since 2021, amidst a backdrop of escalating tensions between the US and China, and sanctions imposed by the EU on a key Indian refiner. According to a report by Bloomberg, about five lakh barrels of diesel from Russia-linked Indian refiner Nayara Energy, which controls India’s second-largest refinery, is heading to China.
This development comes as a surprise, given the complex web of trade tensions and sanctions that have been in place between the US and China in recent years. The US had imposed 50% tariffs on Indian exports, including oil products, in 2021, while the EU had announced sanctions on Nayara Energy, citing concerns over its links to Russian energy giant Rosneft.
The cargo, which was initially bound for Malaysia, made a sudden U-turn towards China’s Zhoushan, a major refining hub. This shift in destination is a significant departure from India’s traditional stance of avoiding direct exports to China due to concerns over the country’s human rights record and its territorial disputes in the South China Sea.
Nayara Energy, which is controlled by Russian billionaire Mukesh Ambani, has faced intense scrutiny in recent months over its ties to Rosneft. The EU had imposed sanctions on Nayara in 2021, citing concerns that the company was providing financial support to Rosneft, which was facing US sanctions.
The sudden change in destination for the diesel cargo has raised questions about India’s stance on the issue. India has traditionally been a vocal critic of China’s human rights record and has supported the US in its push for sanctions against China.
However, the country’s decision to send diesel to China despite the US tariffs and EU sanctions suggests that India is willing to take a pragmatic approach to its trade relations with China. This could be seen as a sign of India’s growing willingness to engage with China despite their differences, particularly in the context of the ongoing US-China trade war.
The development also highlights the complexities of global trade and the intricate web of relationships between countries. India’s decision to send diesel to China despite the sanctions imposed by the US and EU demonstrates the country’s willingness to prioritize its own economic interests over the pressures of international politics.
The cargo itself is significant, with about five lakh barrels of diesel valued at around $450 million. The shipment is a rare example of India’s direct exports to China, which have been limited in recent years due to the country’s concerns over human rights and territorial disputes.
The decision to send diesel to China also comes at a time when India is facing its own set of challenges in the energy sector. The country is struggling to meet its growing demand for energy, particularly diesel, which is a critical component of its transportation infrastructure.
The shipment could help to ease some of the pressure on India’s energy sector, particularly in the short term. However, it is unclear whether this development will have any long-term implications for India’s energy policy or its relationship with China.
In conclusion, India’s decision to send diesel to China for the first time since 2021 is a significant development that highlights the complexities of global trade and the intricate web of relationships between countries. While the decision may raise questions about India’s stance on the issue, it also demonstrates the country’s willingness to prioritize its own economic interests over the pressures of international politics.
