Nayara refinery to be hit hard by EU's Russia sanctions

In measures targeting Russia's ability to raise revenues from its oil and energy sector in the midst of war with Ukraine, the European Union (EU) on Friday unveiled sanctions on the Rosneft-owned Nayara Energy's 20 million-tonne refinery in Vadinar, Gujarat, and lowered the price cap on Russian oil by 15% to $47.6 per barrel from $60.

- Rituraj Baruah

It also imposed sanctions on more 'shadow fleet ships', which are largely used for moving crude oil from Russia. Kaja Kallas, EU's high representative for foreign affairs and security policy, said in a post on social media platform X that the 27-nation grouping has also agreed to ban financial transactions related to Russia's Nord Stream gas pipeline.

Late on Friday night, external affairs ministry spokesperson Randhir Jaiswal said in a statement: "We have noted the latest sanctions announced by the European Union. India does not subscribe to any unilateral sanction measures. We are a responsible actor and remain fully committed to our legal obligations."

The development is expected to hit Nayara hard, especially its exports of petroleum products. Nayara is one of only two Indian companies, the other being Reliance Industries, which exports petroleum products from the country, since only private companies are allowed to export petroleum products.