KYIV—In a significant shift in its energy policy, Ukraine is set to restrict imports of diesel fuel originating from India, starting October 1. The decision, reported by Ukrainian energy consultancy Enkorr, is a direct response to India’s substantial purchases of discounted Russian crude oil.
For months, the situation has presented a complex paradox. Following the destruction of its key Kremenchug oil refinery in June due to Russian missile and drone attacks, Ukraine had been forced to rely on imported fuel. This led to a situation where India, which has become one of the largest buyers of Russian crude since the start of the full-scale war in 2022, emerged as a critical supplier of refined diesel to Ukraine. According to another consultancy, A-95, Indian-origin diesel accounted for 18% of Ukraine’s total diesel imports in August, with some of the fuel even being purchased by the Ukrainian defense ministry.
The irony of Ukraine’s wartime economy being fueled by a product derived from its adversary’s oil has been a point of international discussion. The situation highlights the complexity of global energy flows, where India refines the cheap Russian crude it imports and then sells the refined products, including diesel, to countries in Europe and beyond, including Ukraine.
However, the Ukrainian government is now taking steps to address this. Enkorr reports that Ukrainian security bodies have ordered that all consignments of imported Indian diesel fuel will now be subject to mandatory laboratory analysis to check for the presence of Russian components. This move, which effectively creates a barrier to Indian diesel, reflects a growing unease in Kyiv about inadvertently supporting Moscow’s war machine.
Prior to the 2022 invasion, Ukraine’s primary sources of diesel were neighboring Belarus and Russia. Since then, it has shifted to importing fuel primarily from European countries to the west. The recent reliance on India was a temporary measure to compensate for the significant loss of its domestic refining capacity. The decision to curb these imports signals a renewed effort to reduce any indirect dependence on Russian oil and align more closely with the broader sanctions regime against Moscow.