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European Union

EU Unveils Sanctions on Vadinar Refinery and Refined Petroleum Products Made from Russian Crude Oil

Strategic Insights

— 1 min read

The European Union has announced new sanctions on the Vadinar refinery in Gujarat, jointly owned by Russian energy firm Rosneft and an investment consortium, as part of a package largely aimed at curbing the revenues of Russia's oil and energy sector. The sanctions also include an import ban on refined petroleum products made from Russian crude oil and coming from any third country. This development comes as India has emerged as a significant energy supplier, with Russia accounting for nearly 35% of overall supplies. The Indian government has responded by reiterating its stance against unilateral sanctions and calling for an end to double standards in energy trade.

Key Takeaways:

  • The EU has sanctioned the Vadinar refinery in Gujarat, jointly owned by Russian energy firm Rosneft and an investment consortium, as part of a package aimed at curbing Russia's oil and energy revenues.
  • The sanctions include an import ban on refined petroleum products made from Russian crude oil and coming from any third country, excluding Canada, Norway, Switzerland, the United Kingdom, and the United States.
  • India has responded to the EU's action by reiterating its stance against unilateral sanctions and calling for an end to double standards in energy trade.
  • The new EU sanctions target 105 more ships that are part of a fleet used to transport Russian crude.
  • The EU will set a moving price cap on Russian crude at 15% below its average market price to improve on the largely ineffective $60-cap set by the G7 in December 2022.
  • Ajay Srivastava, founder of Global Trade Research Initiative, states that the EU's new sanctions may impact India's petroleum trade with Europe and that similar action from the US cannot be ruled out.

Statistics:

  • India's exports of petroleum products to the EU stood at $19.2 billion in Fiscal Year 2024 but dropped to $15 billion in FY2025.
  • Russia accounts for nearly 35% of India's overall energy supplies.
  • The Vadinar refinery in Gujarat has an annual capacity of 20 million metric tonnes (MMT) or 405,000 barrels per day (bpd).

Sources:

  • "EU sets new sanctions on Russian oil, Indian refinery amid tensions with Moscow" by Hindustan Times
  • "Global Trade Research Initiative"
  • "European Union unveils new sanctions on Russia over Ukraine conflict"
  • "India's petroleum exports to the EU in Fiscal Year 2024 and FY2025"

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