EU Sanctions Russia-backed Gujarat refinery, India Criticises the Action

On Friday, July 18, 2025, the European Union (EU) announced fresh sanctions. These sanctions include the Gujarat refinery owned by Nayara Energy Ltd. This is an action targeting Russia’s energy sector.  This comes at a time when the US is also debating further sanctions on purchasers of Russian crude oil. India, China and Brazil could face penalties in such a situation.

Oil Price Cap Tightens

The new EU sanctions also include a lowering of the oil price cap. This specifies the highest price countries can pay for Russian oil. This is while using shipping and insurance from the advanced economies of the G7 group of countries. It has been reduced from $60 per barrel to $47.6 per barrel. The new oil price cap is set at 15% below the average market price of Russian crude. It was also adopted by the U.K., as announced by the U.K.’s Foreign Commonwealth and Development Office (FCDO). On the other hand, all G-7 nations have not adopted the same.

Also read: Trump Threatens New Sanctions on Russia Over Ukraine, Warns of Heavy Tariffs on Oil Imports

The sanctions also include an EU-wide import ban on refined petroleum products made from Russian crude oil. It also imposes a full transaction ban on Nord Stream 1 and 2. These are natural gas pipelines that connect Russia and Germany. 

Sanctions Reach India

“For the first time, we’re designating a flag registry. We are also designating the biggest Rosneft refinery in India.” The EU’s highest-ranking diplomat, Kaja Kallas, said this on X. She listed highlights of the 18th sanctions package. “Each sanction weakens Russia’s ability to wage war. The message is clear: Europe will not back down in its support for Ukraine,” Ms. Kallas said in a statement.

Russian state oil firm Rosneft has a 49.13% stake in Nayara Energy’s refinery based in Vadinar, Gujarat. The remainder is owned by SPV Kesani Enterprises Co. Ltd., and individual investors. This is India’s 2nd largest refinery. It produces 4,00,000 barrels per day and operates 6,300 plus petrol pumps across India. The company has reportedly been in talks with Reliance Industries Ltd. regarding a sale of its stake.

Massive Crackdown on Russia’s Global Network

The new package sanctions 14 individuals and 41 entities, bringing the total number of EU-listed entities to over 2,500. It also contains enhanced sanctions on Russia’s so-called ‘shadow fleet’. This refers to ships that are sanctioned or transacting in sanctioned goods. An additional 105 vessels will now be banned from accessing EU ports. They will also be prohibited from a wide range of maritime services. This increases the total number of listed vessels to 444. A total transaction ban will also be introduced on 45 Russian Banks.

Indian Government Criticises EU

The Government of India said it does not support “unilateral sanctions” by the European Union. “The Government of India considers the provision of energy security a paramount responsibility. It is crucial to meet the basic needs of its citizens. There should not be any double standards. This is especially important in energy trade,” foreign ministry spokesperson Randhir Jaiswal said. He added, “We would stress that there should be no double standards, especially when it comes to energy trade”.

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