From January to August 2024, the European Union increased its oil purchases from India by nearly 20% compared to the same period in 2023.
These purchases have raised concerns, as much of the oil being bought by India originates from Russia, which continues to be affected by EU sanctions.
While these transactions remain within the boundaries of international law, they are occurring against the backdrop of sanctions that cap the price of Russian oil at $60 per barrel. These measures were implemented by the EU and other Western countries and were designed to limit Russia’s revenues from oil exports while still allowing global markets to access Russian oil at a controlled price. However, the EU’s indirect purchase of Russian oil through Indian intermediaries has drawn criticism, with critics arguing that such transactions undermine the intent of the sanctions.
India, which has become a significant buyer of discounted Russian oil since the war in Ukraine began, processes and refines the oil before selling it to countries like the EU. As a result, oil that was originally sourced from Russia is entering European markets legally but indirectly, raising questions about the effectiveness of the sanctions regime.
This shift in European oil procurement strategies comes at a time when the EU is under pressure to balance energy security with its sanctions policy against Russia. Some European officials argue that purchasing oil through third-party countries is a practical necessity in the face of growing energy demands and supply uncertainties. While on the other hand, others see it as a loophole that weakens the sanctions impact on Russia’s economy.
