India Advocates for Fair Energy Trade Standards Amid EU Sanctions on Russian Sector

India has expressed its stance against unilateral sanctions, urging for fairness in energy trade. This follows the European Union's (EU) recent sanctions targeting Russia's energy sector, including restrictions on the Vadinar refinery in Gujarat. The EU's 18th sanctions package aims to reduce Russia's oil revenue by banning imports of refined petroleum products made from Russian crude oil.

EU Sanctions and India's Response

The EU's measures also involve lowering the oil price cap from USD 60 to approximately USD 48 per barrel. The Vadinar Refinery, where Russian firm Rosneft holds a significant stake, is specifically targeted. In response, India emphasised its commitment to legal obligations and energy security for its citizens. External Affairs Ministry spokesperson Randhir Jaiswal stated, "We would stress that there should be no double standards, especially when it comes to energy trade."

Kaja Kallas, the EU's foreign and security policy chief, highlighted the strength of the new sanctions package against Russia. She stated on social media that these measures are among the strongest yet and aim to weaken Russia's war capabilities. "The message is clear: Europe will not back down in its support for Ukraine," Kallas said.

Details of the Sanctions Package

The EU has introduced a dynamic mechanism to adjust the oil price cap according to global prices, ensuring its effectiveness. Oil exports account for a third of Russia's government revenue. The sanctions target Russian and international companies managing shadow fleet vessels and traders of Russian crude oil.

The EU statement mentioned 55 listings, including 14 individuals and 41 entities undermining Ukraine's sovereignty. For the first time, a shadow fleet vessel captain and a private operator of an international flag registry are listed. Additionally, one entity in Russia's LNG sector is included.

Impact on Global Energy Trade

The EU has imposed an import ban on refined petroleum products made from Russian crude oil from any third country, except Canada, Norway, Switzerland, the UK, and the US. This move aims to align with current global oil prices while maintaining pressure on Russia.

Nayara Energy's Vadinar refinery in Gujarat is affected by these sanctions due to Rosneft's 49.13% stake. The EU aims to curb revenues from this major customer of the shadow fleet.

India remains firm in its position against unilateral sanctions and advocates for equitable practices in energy trade. The government prioritises energy security as essential for meeting citizens' basic needs.

With inputs from PTI