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India Surges to Become Ukraine's Largest Diesel Supplier Amid Geopolitical Challenges

India Surges to Become Ukraine's Largest Diesel Supplier Amid Geopolitical Challenges

India has now become the largest supplier of diesel to Ukraine. By July 2025, India accounted for 15.5% of Ukraine's diesel imports, a significant jump from just 1.9% a year prior. Despite geopolitical complexities, including the Russia-Ukraine war and US tariff pressures, India has consistently increased its supply.

Ukraine's Economy: Diesel supplied from India plays a crucial role in Ukraine's economy. By July 2025, India provided 15.5% of Ukraine's diesel imports, up from 1.9% in the previous year. Amidst US tariffs and the Russia-Ukraine war, India has continued to be a reliable supplier to Ukraine by consistently increasing diesel supply. The supply primarily moves through Romania and Turkey routes. Bilateral trade between India and Ukraine has also grown, reaching USD 1036.88 million in 2024-25.

India Emerges as Ukraine's Largest Diesel Source

US President Donald Trump imposed various tariffs on India concerning the ongoing conflict between Russia and Ukraine. A 25% additional tariff was levied on India's purchase of crude oil from Russia, bringing the total tariff to 50%. The intention behind this was to reduce India's reliance on Russian oil supplies. Despite this, India continued to purchase oil from Russia and steadily increased its diesel supply to Ukraine.

By July of this year, India surpassed other suppliers to emerge as Ukraine's largest diesel source. India now accounts for 15.5% of Ukraine's total diesel imports. This increase has established India as a reliable supplier amidst complex geopolitical situations.

Supply Routes and Logistics

Indian diesel reaches Ukraine through various channels. A significant portion is transported via tankers from Romania through the Danube River. Additionally, goods are also dispatched from the OPET terminal at the port of Marmara Ereğlisi in Turkey. These routes have helped India maintain its position as a dependable supplier to Ukraine, even amidst challenging geopolitical circumstances.

Growing Share in 2025

From January to July 2025, India supplied 10.2% of Ukraine's diesel imports. This is a five-fold increase compared to 1.9% during the same period last year. However, in terms of physical exports, Greece and Turkey still lead India. But according to July's data, India has surpassed its competitors to take the top spot.

July Import Structure

Despite India's top position in July, the contributions from other countries remained significant. Substantial diesel supplies came from Greece and Turkey, while Slovakia registered a higher share than both. Supplies from Poland and Lithuania's Orlen group constituted approximately 20% of the total imports. Additionally, Swedish exports via Poland and Denmark also reached record levels.

India-Ukraine Bilateral Trade

Trade between India and Ukraine is continuously growing. In 2019-20, bilateral trade between the two countries was USD 2.76 billion, which rose to USD 3.39 billion in 2021-22. However, due to the Russia-Ukraine war, trade saw a decline in 2022-23, falling to USD 782.94 million. In 2023-24, trade slightly decreased to USD 713.16 million.

Nevertheless, signs of improvement were visible in exports in 2024-25. Indian exports steadily increased from USD 132.68 million to USD 187.39 million. Meanwhile, imports from Ukraine nearly doubled, growing from USD 539.86 million to USD 1036.88 million.

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