Sanctions against russia forced India to supply diesel to China for the first time in four years

This was reported by Bloomberg.

The tanker EM Zenith departed from the Nayara terminal in Vadina on 18 July, carrying about 496,000 barrels of ultra-low sulphur diesel, according to Kpler, a port agent report and ship tracking data compiled by Bloomberg.

The departure came just hours before the EU announced restrictions on a Rosneft-backed oil refinery as part of new pressure on oil trade with russia.

The vessel was originally bound for Malaysia but turned back in the Strait of Malacca and remained off the coast for more than 12 days after several Nayara cargoes were blocked following the EU sanctions. The tanker has now changed course and is heading for Zhoushan, China.

A Nayara representative did not respond to a request for comment.

The sanctions have also complicated payments for Nayara in recent weeks, forcing the company to demand advance payments or letters of credit for fuel deliveries prior to loading, as well as to cut production at its Vadinar refinery due to the suspension of crude oil supplies.

This shipment of diesel to China is the first from India since April 2021, according to Kpler. It comes amid a thaw in bilateral relations between the Asian neighbours.

Source: Economic Pravda, Bloomberg