The European Union has rolled out a new sanctions package, placing restrictions on Nayara Energy’s refinery in Gujarat—India’s second-largest oil refinery—due to its links with Russian oil. The refinery, located in Vadinar, is partly owned by Russian state oil company Rosneft, which holds a 49.13% stake. Nayara Energy produces 400,000 barrels per day and operates over 6,300 fuel stations across India. The decision aligns with a broader EU effort to tighten the noose around Russia’s energy revenues amid the Ukraine conflict.
This marks the first time the EU has sanctioned a refinery outside Russia for refining Russian crude oil. EU foreign policy chief Kaja Kallas confirmed the move, calling it part of the 18th sanctions package aimed at weakening Moscow’s capacity to fund its war efforts.
The new measures also reduce the oil price cap for Russian crude from $60 per barrel to $47.6, limiting the amount buyers can pay while still using shipping and insurance services from G7 nations. Additionally, Europe has imposed a ban on refined petroleum products made from Russian crude and fully blocked transactions related to the Nord Stream 1 and 2 gas pipelines.
The sanctions list now includes 14 more individuals and 41 entities, pushing the total to over 2,500. Europe is also cracking down on Russia’s “shadow fleet”—vessels involved in sanctioned activities—with 105 more ships added to the restricted list, bringing the total to 444. One flagged vessel captain and an operator of an international flag registry have also been sanctioned.
Beyond oil, the EU has expanded banking and defense-related sanctions, including full transaction bans on 45 Russian banks and restrictions on entities supplying dual-use goods to Russia and Belarus.
Simultaneously, the United Kingdom announced sanctions on Russia’s military intelligence agency, GRU, for its involvement in cyberattacks and war crimes, including the Mariupol Theatre bombing and the 2018 Novichok poisoning in Salisbury.
These moves coincide with U.S. Congressional debates over imposing stricter penalties on nations buying Russian oil, including India.
