EU sanctions Gujarat refinery, targets Russia’s energy sector

On Friday, European Commission Vice-President Kaja Kallas wrote on social media platform X:

“For the first time, we are sanctioning the largest Rosneft refinery in India and including a flag registry in the sanctions.”

The European Union (EU) has announced its 18th round of sanctions against Russia in response to the ongoing war in Ukraine.

Among the new measures, the EU has sanctioned a refinery in Vadinar, Gujarat, owned by Nayara Energy Ltd. — formerly Essar Oil Ltd.

The Russian state-owned oil company Rosneft owns a 49.13% stake in this refinery, which is the second-largest in India, with a production capacity of 400,000 barrels per day and more than 6,300 petrol pumps across the country.

The sanctions come at a time when the U.S. Congress is also considering sanctions on countries — including India, China, and Brazil — that continue purchasing Russian crude oil.

🔻 Key Sanctions Highlights:

• Oil price cap lowered: The price ceiling for Russian oil — while using G7 maritime and insurance services — has been reduced from $60 to $47.6 per barrel.
• EU-wide import ban on refined petroleum products made from Russian crude.
• Complete transaction ban on the Nord Stream 1 and 2 pipelines, which connect Russia and Germany.

Despite concerns raised by Slovakia’s Prime Minister Robert Fico over his country's energy security, the sanctions package passed. The EU aims to completely phase out Russian gas imports by 2028

Kaja Kallas stated:

“Every sanction weakens Russia’s ability to wage war. The message is clear — Europe will not back down in its support for Ukraine.”

Sanctions on the Refinery:

• Travel bans
• Asset freeze
• Ban on provision of resources

These "full-scale sanctions" apply to Nayara Energy's refinery. The remaining shares of the refinery are held by Kesani Enterprises (SPV) and other private investors. Reports indicate that Nayara has been in talks with Reliance Industries Ltd. regarding the possible sale of its stake.

🧾 Other Sanctions Announced:

• Sanctions on 14 individuals and 41 entities, raising the EU sanctions list to over 2,500 entities.
• Expansion of sanctions on Russia’s ‘shadow fleet’ — ships involved in unauthorized or sanctioned trade.
• 105 additional vessels banned from EU ports and maritime services, increasing the total to 444 sanctioned ships.
• A shadow fleet ship captain and an unnamed international flag registry operator have also been added to the list.
• A total transaction ban on 45 Russian banks will be enforced.
• 26 new entities added for supplying dual-use technologies (civilian and military) to Russia and Belarus.

UK Sanctions on Russian Intelligence (GRU)

The UK has imposed sanctions on three units of Russia’s military intelligence agency (GRU) and 18 intelligence officers.

UK Foreign Secretary David Lammy said:

“GRU operatives are leading efforts to destabilize Europe, undermine Ukraine’s sovereignty, and endanger British citizens.”

The UK government stated that these units had aided Russia’s 2022 strikes on Mariupol, including the attack on the Mariupol Theatre, where hundreds of civilians, including children, were killed.
They were also involved in the 2018 Novichok poisoning of Sergei Skripal and his daughter Yulia Skripal in Salisbury.

🛢️ Why This Matters for India

This marks the first time the EU has imposed sanctions on an Indian refinery. The move is particularly sensitive for India’s energy policy and foreign relations, given its deepening ties with Russia and its commitment to strategic autonomy.

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