In a powerful step to pressure Russia, the European Union (EU) has announced sanctions on a major oil refinery located in Gujarat, India. This refinery is owned by Nayara Energy Ltd., which is partly controlled by Rosneft, the Russian state-owned oil company.
EU Hits Indian Refinery Linked to Russian Oil Giant Rosneft
This marks the first time the EU has targeted an oil facility in India under its sanctions aimed at Russia’s energy sector. The move is part of the EU’s 18th round of sanctions, which are designed to cut off funding sources for Russia amid its ongoing war in Ukraine. The announcement was made by Kaja Kallas, the EU’s highest-ranking diplomat.
Nayara’s refinery in Vadinar, Gujarat, is India’s second-largest. It produces about 400,000 barrels of oil per day and operates over 6,300 petrol pumps across the country. Rosneft owns 49.13% of this refinery, while the remainder is held by Kesani Enterprises Co. Ltd. and other investors. Reports suggest Nayara has been in talks with Reliance Industries Ltd. to sell its stake.
The EU has now imposed full sanctions on the refinery. These include travel bans, asset freezes, and a complete ban on business transactions. European companies can no longer offer goods, services, or support to the facility in any form.
Europe Lowers Russian Oil Price Cap and Bans More Ships
As part of the same sanctions package, the EU has also reduced the price cap on Russian oil. Countries using shipping or insurance services from G7 nations (which include the EU, the U.S., U.K., and others) can now only pay up to $47.60 per barrel for Russian crude. This is down from the earlier cap of $60. The goal is to limit how much money Russia can make from selling oil.
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The EU also announced a full import ban on refined petroleum products made from Russian crude oil. This means even if the oil has been processed elsewhere, if it started as Russian crude, it cannot enter the EU market.
Additionally, the EU has taken tough steps against Russia’s so-called “shadow fleet.” These are ships that secretly transport oil and goods for Russia, avoiding sanctions. An extra 105 ships have been banned from EU ports and cannot receive maritime services from EU countries. This brings the total number of banned vessels to 444.
A captain of one of these shadow fleet vessels and the operator of an unnamed international flag registry have also been placed under sanctions.
More Banks, Companies, and Military Links Under Fire
The new EU sanctions go beyond just oil. A total of 14 individuals and 41 companies have been added to the EU’s sanctions list. This means over 2,500 entities are now facing EU restrictions. The sanctions include travel bans and freezing of assets across EU countries.
Among the latest targets are 26 companies believed to be helping Russia by providing dual-use goods — items that can be used for both civilian and military purposes. Several more firms tied to the military operations of Russia and Belarus have also been sanctioned, according to a statement from the European Council.
Banking sanctions have also been expanded. Now, 45 Russian banks face a full transaction ban, meaning they are cut off from dealing with EU financial systems entirely.
U.K. Targets Russian Intelligence Units in Parallel Move
Meanwhile, the U.K. has taken steps alongside the EU. The Foreign Commonwealth and Development Office (FCDO) announced sanctions on three units of Russia’s military intelligence agency GRU and 18 of their officers. These units have been accused of launching cyberattacks and supporting deadly operations in Ukraine, including the bombing of the Mariupol Theatre in 2022.
The GRU units and individuals were also linked to cyberattacks targeting Yulia Skripal, the daughter of Sergei Skripal, a former Russian double agent. Both were poisoned in Salisbury in 2018 using Novichok, a powerful nerve agent.
In a strong message, U.K. Foreign Secretary David Lammy said these spies are part of a campaign to destabilise Europe and threaten British citizens.
This sweeping package marks a serious move by the EU and its allies to stop money flowing into Russia’s war efforts. By striking a refinery in India with deep Russian ties, Europe has shown it is ready to take bold actions beyond its borders.