In a surprising move, the European Union (EU) has imposed sanctions on a major refinery in Gujarat, India, due to its links with Russian oil giant Rosneft, which owns over 49% stake in Nayara Energy.
This is the first time an Indian refinery has been directly impacted by EU sanctions related to the Russia–Ukraine war. The sanctions come as part of the EU’s 18th package aimed at cracking down on Russian oil entering global markets through third countries. Nayara’s Vadinar refinery processes large volumes of cheap Russian crude, which are then refined and exported globally—including to Europe.
Under the new restrictions, the EU has banned the import of petroleum products refined from Russian oil—even if the refining is done outside Russia. This means Nayara can no longer export its refined fuels like diesel and petrol to EU countries.
India’s government has strongly criticized the move, calling it “unilateral and unjustified”, stating that energy security is a priority for a developing country like India. Many experts believe this could slightly affect India’s fuel export revenues and diplomatic ties with Europe.
However, some also see a possible benefit: India might be able to negotiate even cheaper Russian crude due to the global pressure on Russian oil sales.
This development shows how deeply global politics can impact trade—and how India must balance its energy needs with international expectations.
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