India’s Nayara Energy has dispatched its first diesel shipment to China since 2021, amidst renewed European Union sanctions targeting Russia’s oil trade. The vessel EM Zenith, carrying about 496,000 barrels of ultra-low sulfur diesel from Nayara’s Vadinar refinery in Gujarat, departed on July 18 initially bound for Malaysia. However, following EU sanctions that specifically targeted the Rosneft-backed refinery, the ship altered course and is now headed to Zhoushan, China, with an expected arrival around August 20. The sanctions have disrupted crude supplies to Nayara, forcing the company to seek advance payments and cut production. This rare export marks a thaw in India-China trade relations, coinciding with China’s relaxation of urea export restrictions to India and preparations to resume direct flights after a five-year suspension. The developments come ahead of Prime Minister Narendra Modi’s planned visit to China at the end of August, reflecting a strategic shift amid evolving global trade tensions.