European Union Sanctions on Russian Crude After Russia-Ukraine War: Opportunity for India's Energy Security and Oil Refinery Industry

European Union (EU) and the G7 Nations imposed sanctions on Russia in December 2022 and introduced a price cap and an embargo on the imports of the Russian Crude Oil. This was with aim to restrict war funding of Russia for the invasion of Ukraine. Since then a significant realignment in global energy trade and shift in Russian oil market has emerged. India has limited energy resources but with growing economy and social responsibility has very high energy demand. It cannot afford higher price of petroleum products. In case, the Russian Oil was out of market, the petroleum product cost would have gone beyond affordable means of the country. Accordingly India has made use of this opportunity and has increased its crude refining capacity to meet its own energy demand and to become EUs largest supplier of refined fuels, mainly sourced from discounted Russian Crude. In bargain India has earned much valued foreign exchange, and earned profits on imports of oil, which was unheard prior to COVID-19 period. The increase of refining capacity is in confirmation with India’s ‘Atma Nirbhar Bharat’ and ‘Make in India’ initiative. Indian’s crude refining infrastructure can cater for refining capacity of more than 257 MMPTA through its PSU refinery, joint venture refineries and Private Sector Refineries. This paper examines the strategic, economic and geopolitical dynamics for this trend, highlights the role of India’s Refining capability enhancements, the problems related to regulatory loopholes in EU Sanctions and the broader aspect of Energy security for India. It also gives future prospects and recommendations for Indian Government and associated private players in the industry.