New Delhi: The European Union (EU) on Friday imposed sanctions on the Indian oil refinery of Russian energy giant Rosneft and lowered the oil price cap as part of a fresh set of measures against Russia over its war in Ukraine.
“For the first time, we’re designating a flag registry and the biggest Rosneft refinery in India,” EU’s High Representative for Foreign Affairs and Security Policy Kaja Kallas said in a post on X.
The flag registry in question includes a list of ships sailing under the Indian flag.
The sanctions also cover the biggest Rosneft refinery in India. While Rosneft does not directly own a refinery in India, it holds a 49.13% stake in Nayara Energy, which operates the Vadinar refinery — the second-largest single-site refinery in India.
Rosneft owns a 49.13% stake in Nayara Energy Ltd, formerly Essar Oil Ltd. Nayara owns and operates a 20 million tonne a year oil refinery in Gujarat’s Vadinar and also 6,750 petrol pumps.
As a result of latest EU sanctions targeting Russia, India’s refined oil exports will face increased challenges as Nayara won’t be able to export petrol and diesel to European countries.
However, the lowered oil price cap, currently set at $60 per barrel, means Russia will be forced to sell its crude at reduced rates.
Kallas did not specify the new, lowered price cap, but reports suggest it will initially be set between $45 and $50 per barrel, with automatic revisions at least twice a year based on market conditions.
India will apparently benefit, as it is the second-largest purchaser of Russian oil. In fact, Russian crude oil currently accounts for nearly 40 per cent of India’s total oil imports.
However, continued purchases from Russia may be a risky proposition if the US implements its threat of sanctions. President Donald Trump warned earlier this week that nations buying Russian exports could face sanctions or steep tariffs if Moscow does not reach a peace agreement with Ukraine within 50 days.
NATO, too, warned of similar sanctions.
Also Read: India Rejects NATO’s Sanctions Threat Over Russia Oil Trade, Warns Of ‘Double Standards’
Like the US, EU is also keeping up its pressure on Vladimir Putin to end hostilities against Ukraine as its fresh sanctions package include new banking restrictions, and curbs on fuels made from Russian crude oil.
“We are standing firm. The EU just approved one of its strongest sanctions package against Russia to date. We’re cutting the Kremlin’s war budget further, going after 105 more shadow fleet ships, their enablers, and limiting Russian banks’ access to funding,” Kallas stated.
