India has restarted the exporting of rare diesel cargo to China since 2021 from Nayara Energy’s Vadinar refinery in Gujarat, which is owned by Russian oil giant Rosneft. It faces challenges due to under pressure of EU sanctions on Russian entities, which have disrupted its traditional oil product export. These sanctions cause economic issues, logistical barriers, leading Nayara to reroute diesel to China, its significant energy source market. This action will create difficulties in India’s global trade. As a result of China is one of the world’s largest energy consumers, has emerged as a key strategic market for Indian diesel.
Simultaneously, China has clear urea export restrictions on India, and allowing around 3 lakh tonnes to be exported to India and enhancing the trade indicates a reciprocal trade dynamic and balancing bilateral trade tensions. For both nations, this diesel export shows that strong ability to refine oil and an upgrading hub in global energy markets, despite external pressures.
