Nayara Energy’s Vadinar Oil Rafinery in Gujarat, India, was hit by sanctions because the European Union (EU) introduced new repressive measures focused on the Russian energy sector. The new restrictions have triggered a harsh reaction from India, which called on the termination of double standards in energy trade.
Here’s all you need to know about EU sanctions for the Nayara Energy oil refinery in Gujarat:
New EU sanctions
The new EU sanctions include a lower limit of oil prices, the “largest Rosneft refinery in India” and measures focused on 105 other shadow fleets.
“Full sanctions focus on Russian and international companies that control shadow fleet vessels, Russian oil traders and the main customer of shadow fleet-frames in India with Rosneft as its main shareholder,” the EU quoted.
Also read | Nayara refinery to be hard to hit by EU sanctions for Russian oil
The EU referred to the Vadinar refinery Nayara Energy in Gujarat.
18. EU 27-Country package included a set of measures aimed at limiting income from Russian oil and energy.
The measures also included a reduction in oil limitation from $ 60 to $ 48 per barrel. They also have a ban on importing refined oil products made from Russian oil and from any third country – with the exception of Canada, Norway, Switzerland, Great Britain and the United States.
Why sanctions EU sanctions Nayara Energy’s rafineries
According to Reuters, Russian energy giant Rosneft has 49,13 percentage in Vadinar Rafinery Nayara Energy in Gujarat.
Nayara ownership is currently divided between Rosneft and SPV Kesani Enterprises Co. Ltd., investment consortium. The remaining shares are held by retail investors.
Nayara operates a refinery of 400,000 barrels per day and owns nearly 7,000 fuel stores throughout India. It also develops an integrated petrochemical plant next to its refinery.
Also read | EU sanctions that moved LNG from the Yamalian race
India’s reaction: “Double Standards”
Hours after the EU announced new measures, India said there should be “no dual standards”, especially in terms of energy trade.
“India is not subject to any unilateral sanction measures. We are a responsible actor and remain fully determined to our legal obligations,” said Foreign Ministry spokesman Randhir Jaiswal.
Also read | Russian billionaire wins a legal case against EU sanctions
“The Indian government considers the ensuring energy security as responsibility for the primary importance for satisfying the basic needs of its citizens,” he said.
Jaiswal also said, “We would emphasize that there should be no double standards, especially in terms of energy trade.”
“Rosneft’s plan to sell a stake in Nayara Energy”
The plan of the Russian energy giant Rosneft for the sale of its share in India Nayara Energy Ltd. It can be threatened by new limitations of the European Union.
According to Bloomberg, Rosneft conducted interviews with Reliance Industries Ltd., owned by billionaire Mukesh Ambani, for a possible sale of Nayara.
However, sanctions make it more difficult for the purchase of a share of its competitor, as it could endanger the company’s business in Europe, a region that regularly imports Indian fuels, including diesel.
Also read | Nayara refinery to be hard to hit by EU sanctions for Russian oil
The Reliance Jamnagar processor, the largest refining complex in the world, is in several kilometers of Nayar Vadinar troops Nayara.
Rosneft wanted to end his Indian business because the company was unable to repatriate its income for sanctions, according to local media reports.
Indian import of oil from Russia
Indian imports of oil from Russia increased slightly in the first half of this year, while the private refinery of Reliance Industries Ltd and Nayara Energy made about half of the total purchases from Moscow.
According to data cited by Reuters, India, the third largest oil importer in the world and consumer, received about 1.75 million barrels of Russian oil in January-red this year, which is 1% compared to pre-creation.
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Russia continued to be the best supplier in India, which represents about 35% of the total supply of India, followed by Iraq, Saudi Arabia and the United Arab Emirates, showed the data.
In the event that Russian reserves are hit, Indian Oil Corp “returns to the same template (supplies) as it was used before the Ukrain crisis when Russian stocks were below 2%,” Company’s chairman, as Zeta told reporters at the event.
Also read | India is not afraid of possible US sanctions for Russian oil imports: Minister
“India is convinced of satisfying her oil needs”
Oil Minister Hardeep Singh Puri said on Thursday that India is convinced of satisfying his oil needs from alternative sources if Russian reserves are affected by secondary sanctions.
At the beginning of this week, US President Donald Trump warned that countries that buy Russian exports could face sanctions if Moscow did not reach peace agreements with Ukraine within 50 days.
“I’m not afraid at all. If something happens, we are dealing with it,” Puri said at the industrial event in Nový Delhi. “India diversified the sources of the offer and we left, I think, from about 27 countries that we have now bought from about 40 countries,” he said.
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