India Sends First Diesel Shipment to China Since 2021
A tanker loaded with nearly 496,000 barrels of ultra-low sulfur diesel sailed from the Vadinar refinery in India on July 18, destined for China. This marks the first such export to China since 2021, following a long lull in diesel shipments to that market.
Sanctions Upending Trade
The departure came just hours before the European Union imposed sanctions on Nayara Energy, a refinery partly owned by Russia’s Rosneft. The sanctions have disrupted Nayara’s ability to use standard shipping and financial channels, complicating routine trade and raising the bar for future exports.
Payment and Production Challenges
Nayara has faced obstacles in securing banking support for payments and insurance, prompting demands for advance payments or letters of credit from buyers. These factors, combined with restricted crude oil supply, have forced a reduction in refinery throughput and operational strains at Vadinar.
Route Change and Diplomatic Signals
Initially bound for Malaysia, the tanker altered its course in the Strait of Malacca and remained anchored for about twelve days before heading toward Zhoushan, China—signaling a subtle realignment in trade amid evolving geopolitical conditions.
