India Sends Diesel to China for 1st Time Since 2021 Amid US Tariffs & EU Sanctions: Report
In a rare move, India has sent a shipment of diesel to China, marking the first such cargo since 2021. The development comes amidst a backdrop of escalating tensions between India and the western powers, including the United States and the European Union. According to a report by Bloomberg, about five lakh barrels of diesel from Russia-linked Indian refiner Nayara Energy is headed to China.
Nayara Energy, which controls India’s second-largest refinery, had initially planned to send the cargo to Malaysia. However, the shipment made a U-turn and is now bound for China’s Zhoushan. This unexpected turn of events highlights the complex web of trade relationships and geopolitics that is shaping the global energy market.
The shipment is significant not only because it marks a rare instance of diesel exports from India to China but also because it comes at a time when Nayara Energy is facing sanctions from the European Union. In February, the EU imposed sanctions on Nayara Energy and its Russian co-owner, Rosneft, over alleged violation of human rights in Russia.
The sanctions were a response to the poisoning of opposition leader Alexei Navalny, who was allegedly targeted by Russian agents. Nayara Energy, which is India’s second-largest refiner, has denied any involvement in the poisoning.
The US has also imposed 50% tariffs on Indian exports, including oil products, in response to India’s decision to impose retaliatory tariffs on US goods. The tariffs were imposed as part of a broader trade dispute between the two nations.
The diesel shipment is a rare example of cooperation between India and China, which have had strained relations in recent years. The two nations have been engaged in a border dispute in the Himalayas, which has led to a series of military clashes.
However, the shipment is also seen as a pragmatic move by Nayara Energy to ensure the stability of its business operations. The refiner has been struggling to maintain its market share in the domestic market due to stiff competition from other refiners.
The development is also significant for China, which has been facing a severe energy crisis in recent months. The country has been grappling with power outages, fuel shortages, and high energy prices, which have impacted its economy and industries.
The diesel shipment is likely to provide some relief to China’s energy sector, which has been reeling under the pressure of a severe winter and a global energy crunch. The country has been seeking alternative sources of energy to reduce its dependence on coal and other fossil fuels.
In conclusion, the shipment of diesel from India to China is a significant development that highlights the complex web of trade relationships and geopolitics that is shaping the global energy market. The move is a rare example of cooperation between India and China, which have had strained relations in recent years. However, the development is also seen as a pragmatic move by Nayara Energy to ensure the stability of its business operations.
