Sanctions on Russia push India to send diesel to China for first time since 2021

Sanctions on Russia push India to send diesel to China for first time since 2021
/ Jennifer Latuperisa-Andresen - Unsplash
By bno - Mumbai Office August 14, 2025

India’s Nayara Energy, which has ties to Russia’s Rosneft, is shipping diesel to China for the first time in more than four years, as European Union sanctions disrupt its petroleum exports, Bloomberg reported.

The tanker EM Zenith left Nayara’s terminal at Vadinar on July 18 carrying about 496,000 barrels of ultra-low-sulphur diesel, according to Kpler data, port agent records and vessel-tracking information compiled by Bloomberg. Its departure came just hours before the EU announced new measures targeting Russia’s oil trade, including restrictions on Nayara’s operations.

The shipment was initially bound for Malaysia but reversed course in the Strait of Malacca and idled off the coast for over 12 days after several Nayara consignments were blocked in the wake of the sanctions. The vessel is now heading to Zhoushan, China.

Nayara has not commented on the delivery. In recent weeks, the sanctions have disrupted the company’s payment channels, prompting it to demand advance payments or letters of credit before loading fuel. Reduced crude oil supplies have also led Nayara to cut production at its Vadinar refinery.

Kpler data shows this is India’s first diesel export to China since April 2021. The move comes as bilateral relations between the two countries show signs of improvement.

Separately, Reliance Industries — owner of the world’s largest refining complex at Jamnagar — is reportedly considering halting Russian oil purchases. Nayara has sought government help to address transport issues following the EU restrictions.

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