Russian oil giant Rosneft has hit out at the European Union for imposing sanctions on its Indian affiliate Nayara Energy, calling the move “unjustified and illegal” and warning that it could directly threaten India’s energy security. In a statement issued Sunday, Rosneft said the EU’s action amounted to extraterritorial and politically motivated restrictions that infringe on international law and the economic interests of sovereign states.“These sanctions are yet another example of extraterritorial implementation of politically motivated restrictions that blatantly violate international law and infringe on the economic interests of a sovereign state,” Rosneft said, as per news agency PTI.The European Union on Friday imposed a fresh round of sanctions against Russia over its war in Ukraine, targeting Rosneft’s Indian refinery and lowering the oil price cap. The move is aimed at further choking off Russian revenues and includes new banking curbs and restrictions on fuels derived from Russian crude.While India was not directly named, the sanctions could impact Nayara Energy, which operates a major refinery in Gujarat. Russian crude currently makes up nearly 40 per cent of India’s total oil imports, and as the second-largest buyer of Russian oil, India could benefit from the lower price cap, now set at USD 60 per barrel.However, Rosneft argued that it holds less than 50 per cent stake in Nayara Energy and has no controlling interest. “Nayara is managed by an independent Board of Directors,” the company said, adding that its profits are reinvested in developing the refinery and its retail network, with no dividend payouts to shareholders.Rosneft also asserted that the refinery is a strategic asset for India, contributing to the country’s fuel supply and economic stability. “The imposition of sanctions against the refinery directly threatens India’s energy security and will have a negative impact on its economy,” it said.As per PTI, Rosneft said it expects Nayara to take steps to protect the interests of its shareholders and consumers, supported by the governments of Russia and India.Meanwhile, think tank Global Trade Research Initiative (GTRI) has warned that India’s $15 billion worth of petroleum exports to the EU could be at risk due to these restrictions. GTRI noted that the EU’s ban on fuels refined from Russian oil in third countries like India may significantly impact India’s outbound shipments of diesel, petrol and jet fuel.
