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Strategies & Market Trends : World Outlook

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From: Les H8/30/2025 10:36:36 AM
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India becomes Ukraine’s top diesel source, while facing US tariffs over Russian crude
Indian diesel emerges as Kyiv’s top supply source in July, raising irony as Washington punishes India over Russian oil ties.

India has quietly become Ukraine’s largest diesel supplier, even as it faces 50 percent tariffs from the United States for continuing to import Russian crude.

According to Ukrainian oil market analytics firm NaftoRynok, India supplied 15.5 percent of Ukraine’s total diesel imports in July 2025, more than any other country. Daily deliveries averaged 2,700 tons, making July one of India’s strongest export months this year.

Between January and July, India’s share of Ukraine’s diesel supply rose sharply to 10.2 percent, compared with just 1.9 percent during the same period in 2024.

How Indian diesel reaches Ukraine

Much of the fuel reportedly reached Ukraine through tanker shipments via the Danube from Romania and through the Opet terminal in Turkey.

Other significant suppliers in July included Slovakia (15 percent), Greece (13.5 percent), Turkey (12.4 percent) and Lithuania (11.4 percent). But India’s steep growth trajectory set it apart from the rest.

Analysts, cited by the Ukrainian research firm, note that a portion of these exports could include diesel refined from Russian-origin crude, though official data remains undisclosed.

The development comes at a time of intensifying trade tensions between New Delhi and Washington.

On August 6, President Donald Trump signed an executive order imposing an additional 25 percent levy on Indian imports, taking total tariffs to 50 percent. A further 25 percent tariff came into force on August 27. Trump cited India’s continued purchases of discounted Russian crude, while also dismissing both India and Russia as 'dead economies.'

US Treasury Secretary Scott Bessent later described India as 'a bit recalcitrant' in ongoing trade talks. New Delhi, however, has called the tariffs 'unfair, unjustified and unreasonable', vowing to take necessary steps to protect its economic interests.

The irony: Sanctioned oil, but sanctioned fuel keeps Ukraine running

The situation spotlights a striking irony in global geopolitics: while Washington penalises India for buying Russian oil, Indian-refined diesel is keeping Ukrainian cities powered.

moneycontrol.com
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