EU Places Sanctions On Russia Linked Gujarat Refinery
India-West News Desk
NEW DELHI — In an unprecedented move, the European Union has imposed sanctions on an Indian oil refinery, targeting Nayara Energy’s Vadinar facility in Gujarat over its Russian ownership links. The refinery is partially owned by Russian state-run oil major Rosneft, which holds a 49.1% stake.
Nayara Energy, which operates one of India’s largest private-sector refineries and is heavily reliant on exports, could now face disruptions to key markets such as Africa. Additionally, the sanctions could complicate Rosneft’s ability to repatriate profits or offload its stake, challenges already present under earlier restrictions.
The sanctions are part of the EU’s newly adopted 18th package of measures against Russia, aimed at curbing Moscow’s oil revenues amid its ongoing war in Ukraine. This is the first time the EU has directly sanctioned an Indian energy entity in connection with the conflict.
The EU said the package is aimed at undermining Russia’s energy revenues, its military-industrial supply chains, and preventing sanction evasion. Other elements include new restrictions on the Russian banking sector and measures targeting Belarus.
The bloc also tightened enforcement of the $60-per-barrel price cap on Russian crude, arguing that the current mechanism had become ineffective. Countries outside the G7 can still buy Russian oil under this cap using Western shipping and insurance services, but the EU has now moved to further restrict these arrangements, including by adding 105 more vessels to its list of sanctioned “shadow fleet” tankers. The total now stands at 223 tankers.
India swiftly responded to the EU action, distancing itself from the sanctions and defending its energy trade practices.
“India does not subscribe to any unilateral sanction measures,” said Ministry of External Affairs spokesperson Randhir Jaiswal on July 18. “The Government of India considers the provision of energy security a responsibility of paramount importance to meet the basic needs of its citizens. There should be no double standards, especially when it comes to energy trade.”
Jaiswal added that India remains committed to its legal obligations as a responsible global actor.
Meanwhile, President Donald Trump on July 15 warned that he would impose 100% tariffs on Russian exports and enact secondary sanctions on countries like India and China if a peace deal is not reached within 50 days.(with IANS inputs)
