Rosneft's Strong Opposition to EU Sanctions

Russian oil giant Rosneft has publicly criticized the European Union for its recent sanctions against Nayara Energy, Rosneft's Indian affiliate. Describing the sanctions as "unjustified and illegal," Rosneft warns of potential risks to India's energy security.

Impact on International Law and Sovereign States

In a statement, Rosneft accused the EU of implementing extraterritorial and politically motivated restrictions that violate international law and undermine the economic interests of sovereign states. The company emphasized that these sanctions could have far-reaching consequences beyond the immediate parties involved.

Details of the EU Sanctions

The EU's latest sanctions package targets Russia's oil sector, including a reduction in the oil price cap and new banking restrictions. While India was not directly named, the sanctions could indirectly affect Nayara Energy, which operates a significant refinery in Gujarat. Russian crude accounts for nearly 40% of India's oil imports, positioning India as the second-largest buyer of Russian oil.

Rosneft's Stance on Nayara Energy

Rosneft clarified that it holds less than a 50% stake in Nayara Energy and does not control the company. It highlighted Nayara's independence, with profits reinvested into refinery development and retail network expansion, rather than distributed to shareholders.

Potential Risks to India's Economy

The imposition of sanctions against Nayara Energy's refinery poses a direct threat to India's energy security and could negatively impact its economy. Rosneft expects Nayara to take necessary steps to protect the interests of its shareholders and consumers, with support from the Russian and Indian governments.

GTRI's Warning on India's Petroleum Exports

The Global Trade Research Initiative (GTRI) has raised concerns about the potential impact of the EU's sanctions on India's $15 billion petroleum exports to the EU. The ban on fuels refined from Russian oil in third countries like India could significantly affect India's exports of diesel, petrol, and jet fuel.