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European Union

EU Unveils Sanctions on Indian Refinery Owned by Rosneft, Amid Rising Global Tensions

Strategic Insights

— 2 min read

The European Union (EU) has announced a new package of sanctions against Russia, including a ban on refined petroleum products made from Russian crude oil and coming from any third country. In a move that has sparked tensions between the EU and India, the EU has also targeted the Vadinar refinery in Gujarat, jointly owned by Russian energy firm Rosneft and an investment consortium. India, which has emerged as Russia's top energy supplier since the West slapped sanctions on its oil, has responded by reiterating its stance against unilateral sanction measures and calling for an end to double standards in energy trade.

Key Takeaways:

  • The EU has unveiled sanctions on the Vadinar refinery in Gujarat, jointly owned by Rosneft and an investment consortium, as part of a new package of measures aimed at curbing the revenues of Russia's oil and energy sector.
  • The sanctions include a ban on refined petroleum products made from Russian crude oil and coming from any third country, and a lowering of the oil price cap from $60 to about $48 a barrel.
  • India has emerged as Russia's top energy supplier, accounting for nearly 35% of overall supplies, followed by Iraq and Saudi Arabia.
  • India has responded to the EU's action by reiterating its stance against unilateral sanction measures and calling for an end to double standards in energy trade.
  • The new EU sanctions also include measures aimed at 105 more ships that are part of a fleet used to transport Russian crude.
  • This is the first time since the start of the invasion of Ukraine that EU sanctions have targeted an energy firm in India.
  • The package came days after US President Donald Trump warned that countries buying Russian commodities could face sanctions if Russia fails to reach a peace agreement with Ukraine in 50 days.
  • NATO chief Mark Rutte also spoke of the possibility of sanctions against India, Brazil, and China for trading with Russia.

Statistics:

  • 35%: The percentage of India's overall energy supplies that come from Russia.
  • $60: The previous oil price cap set by the EU.
  • $48: The new oil price cap set by the EU.
  • 105: The number of ships targeted by the new EU sanctions for transporting Russian crude.
  • 50 days: The time frame given by US President Donald Trump for Russia to reach a peace agreement with Ukraine to avoid sanctions.

Sources:

  • "EU Unveils Sanctions on Indian Refinery Owned by Rosneft" by HT Digital Content Services
  • Published with permission from HT Chandigarh
  • Original Article: New Delhi, July 19.

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