The Ministry of External Affairs on Friday said it does not support “unilateral sanctions” by the European Union, after Brussels imposed penalties on Russia that included a Rosneft oil refinery in Gujarat.
The “India does not subscribe to any unilateral sanction measures. Government of India considers the provision of energy security a responsibility of paramount importance to meet the basic needs of its citizens,” MEA spokesperson Randhir Jaiswal said in a post on X.
We would stress that there should be no double standards, especially when it comes to energy trade, he added.
The EU has imposed sanctions on the Indian oil refinery of Russian energy giant Rosneft and lowered the oil price cap, as part of a new raft of measures against Russia over its war in Ukraine.The fresh sanctions package on Russia included new banking restrictions, and curbs on fuels made from Russian crude oil.
The lowered oil price cap – currently set at $60 per barrel – means Russia will be forced to sell its crude at reduced rates to buyers like India. As the second-largest purchaser of Russian oil, India stands to benefit from this move. Russian crude currently accounts for nearly 40 per cent of India’s total oil imports.
Rosneft owns 49.13 per cent stake in Nayara Energy Ltd, formerly Essar Oil Ltd. Nayara owns and operates a 20 million tonne a year oil refinery at Vadinar in Gujarat as also over 6,750 petrol pumps.
An investment consortium SPV, Kesani Enterprises Company holds 49.13 per cent stake in Nayara. Kesani is owned by Russia’s United Capital Partners (UCP) and Hara Capial Sarl, a wholly-owned subsidiary of Mareterra Group Holding (formerly Genera Group Holding S.p.A.).
EU sanctions means Nayara cannot export fuel such as petrol and diesel to European countries.
Among the sanctions announced were ban on Nord Stream pipelines, and a lower cap on price at which Russian can export oil.
In December 2022, the Group of Seven (G7) nations imposed a $60 a barrel price cap on Russian oil sold to third countries. Under this mechanism, Western insurance and shipping services could only be used if the oil was sold at or below the capped price. The goal was to restrict Russia’s oil revenues while maintaining stability in global energy supplies. However, the cap faced criticism for being largely ineffective in achieving its intended impact.
The European Union and Britain had been pushing to lower the price cap after a fall in global oil prices made the current $60 cap nearly irrelevant.
