Rosneft Slams EU Sanctions on Nayara Energy, Warns of Threat to India’s Energy Security

Overview:  

Russian oil major Rosneft has issued a sharp rebuke to the European Union’s latest sanctions targeting its Indian affiliate, Nayara Energy. The company labeled the move as politically motivated and warned of serious implications for global energy stability and India’s domestic fuel supply.

 

Key Developments:  

•⁠  ⁠Rosneft condemned the EU’s sanctions as illegal and extraterritorial, claiming they violate international law and infringe on the sovereignty of third countries.  

•⁠  ⁠The sanctions target Nayara Energy’s Vadinar refinery in Gujarat, in which Rosneft holds a 49.13% stake.  

•⁠  ⁠Nayara is prohibited from exporting refined fuels like petrol and diesel to Europe, as part of the EU’s broader crackdown on Russian energy assets.  

•⁠  ⁠The EU also lowered the oil price cap from USD 60 to approximately USD 47.60 per barrel, aiming to restrict Russia’s revenue from crude exports.

 

Rosneft’s Position:  

•⁠  ⁠The company emphasized that Nayara operates as an independent Indian entity, fully taxed in India, with profits reinvested into domestic infrastructure.  

•⁠  ⁠Rosneft stated it does not control Nayara, and its stake is below 50%, with governance handled by an independent board.  

•⁠  ⁠It warned that the sanctions pose a direct threat to India’s energy security, potentially disrupting fuel supply chains and economic stability.  

•⁠  ⁠Rosneft expressed confidence that Nayara would take steps to protect shareholder and consumer interests, and called for support from both Indian and Russian governments.

 

Implications for India:  

•⁠  ⁠India, which sources nearly 40% of its oil imports from Russia, may benefit from lower crude prices but faces geopolitical pressure.  

•⁠  ⁠The government reiterated its stance against unilateral sanctions and stressed the importance of energy access for its citizens.

 

Sources:  

The Hindu, Livemint, The New Indian Express, Rediff Money, Outlook Business, PTI