<p>India has emerged as Ukraine’s largest supplier of diesel in July 2025, capturing 15.5% of the country’s total imports, according to data from Ukrainian oil market tracker NaftoRynok. Shipments averaged around 2,700 tonnes per day, one of India’s highest monthly export volumes this year.</p>
<p>The surge marks a stunning turnaround from July 2024, when India’s share stood at just 1.9%—a leap that underscores the shifting dynamics of global energy trade.</p>
<h2>A Twist of Irony Amid US-India Tensions</h2>
<p>The timing of this development is striking. Just weeks ago, Washington slapped a 50% tariff on Indian goods, citing New Delhi’s continued purchase of discounted Russian crude. Yet, even as the US penalizes India for its energy ties with Moscow, Indian diesel is playing a crucial role in sustaining Ukraine’s wartime economy.</p>
<h2>How the Fuel Reaches Kyiv</h2>
<p>Despite complex geopolitics, India has managed to establish steady supply routes to Ukraine.</p>
<ul>
<li>A major share flows through tanker deliveries on the Danube via Romania.</li>
<li>Additional cargo moves through Turkey’s Marmara Ereğlisi port, where the OPET terminal remains active despite partial sanctions.</li>
</ul>
<p>These pathways have allowed India to secure a foothold in Ukraine’s energy market, even outpacing several European partners in July.</p>
<h2>Growing Market Share in 2025</h2>
<p>Between January and July 2025, India supplied 10.2% of Ukraine’s diesel imports, a fivefold jump from the same period last year. While volumes from Greece and Turkey remain higher in absolute terms, India’s proportional share in July placed it ahead of all rivals.</p>
<p>July’s Import Breakdown</p>
<p>India may have led in percentage terms, but other suppliers continue to play a vital role:</p>
<ul>
<li>Slovakia delivered more diesel than Greece and Turkey combined.</li>
<li>Poland and Lithuania’s Orlen Group together contributed nearly 20% of imports.</li>
<li>Sweden’s Preem, routing fuel via Poland and Denmark, reached record export levels since the start of Russia’s full-scale invasion, covering 4% of Kyiv’s July needs.</li>
</ul>
<h2>India’s Economy Maintains Strong Momentum</h2>
<p>Alongside its growing export influence, India’s domestic economy continues to accelerate. Official data from the Ministry of Statistics shows GDP expanded 7.8% in Q1 FY2025-26 (April–June), compared with 6.5% in the same quarter last year.</p>
<ul>
<li>Agriculture rebounded with 3.7% growth, up from 1.5% a year ago when erratic monsoons hit farm output.</li>
<li>Manufacturing and construction grew 7.7% and 7.6% respectively.</li>
<li>The services sector surged to 9.3%, compared with 6.8% in Q1 FY2024-25.</li>
</ul>
<p>On the investment front, Gross Fixed Capital Formation (GFCF) rose 7.8%, up from 6.7% a year earlier, signaling stronger capital spending. Government final consumption expenditure also saw a sharp jump of 9.7% in nominal terms, more than double the previous year’s 4%.</p>
<p>Private consumption, though not detailed in full, remained resilient with growth slightly lower than the 8.3% pace recorded last year.</p>
World
As US Slaps Tariff For Trade With Russia, India Becomes Top Diesel Supplier To Ukraine In July
by aweeincm
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