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India retains EU diesel links using Russian oil segregation clause  / EU exempted segregated refining systems from import ban  / Reliance shipping more of its own cargoes to Europe  / Indian diesel flows to EU shrink amid Middle East conflict

India retains EU diesel links using Russian oil segregation clause / EU exempted segregated refining systems from import ban / Reliance shipping more of its own cargoes to Europe / Indian diesel flows to EU shrink amid Middle East conflict

Jun 02, 2026

Indian diesel has continued to reach the EU since it banned fuel made from Russian oil, as private refiner Reliance has satisfied requests for “enhanced due diligence” showing it can segregate its different crude types, five trade sources said. When the EU pledged to close a “sanctions loophole” by banning fuels derived from Russian hydrocarbons from January 2026, it promised to mark an inflection point for the distillates market. Until 2025, policymakers had allowed foreign refiners to process Russian crude and send it back to the EU, developing India and Turkey into important fuel suppliers despite their dependence on Russian oil. By banning such flows under its 18th package of sanctions against Russia, the EU therefore made a significant policy shift, but it set out several caveats that could preserve...

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