“Why India Alone?” Piyush Goyal Confronts UK Over US Sanctions On Russian Oil

Union Commerce Minister Piyush Goyal confronted Chris Bryant, the UK Minister of Trade, at the Berlin Global Dialogue regarding US sanctions imposed on two major Russian oil firms, highlighting that Germany and the UK had sought exemptions.

India's Nayara Energy, controlled by Russia's Rosneft, is among the key Russian oil firms targeted by Britain as part of measures to increase pressure on Moscow to halt its military offensive in Ukraine. Speaking at the dialogue, Goyal questioned why India was singled out for US sanctions on Rosneft and Lukoil, while Germany and the UK had obtained exemptions for their Rosneft subsidiaries. "The UK probably already got an exemption for procuring oil from the US," he noted.

In response, Bryant stated that the discussion was focused on the recent sanctions on Rosneft, and that the UK had resolved its issues with Germany, with the Americans expected to take similar steps. Goyal pressed further, asking, "Then why single out India?"

Bryant clarified that the German case involved a specific subsidiary of Rosneft. When Goyal pointed out that India also had a Rosneft subsidiary, Bryant replied, "Well, come and talk to us. My door is always open."

Background of the Sanctions

The United States imposed sanctions on Russian oil firms Rosneft and Lukoil to pressure Moscow into halting its war in Ukraine, amid growing frustration from US President Donald Trump over Russian President Vladimir Putin's actions. The sanctions followed similar measures by Britain during UK Finance Minister Rachel Reeves' visit to the US. The UK also targeted Nayara Energy, the Russian-owned refinery in India controlled by Rosneft, which has already faced sanctions from the European Union.

These sanctions are part of Western efforts to curb Russia's oil exports. India and China remain the largest buyers of discounted Russian crude after Moscow lost European markets following its 2022 invasion of Ukraine.

Indian refiners are reportedly preparing to reduce imports of Russian oil due to pressure from the US and UK. Reuters reported that Washington doubled tariffs on Indian goods and indicated that reducing Russian oil imports would be a crucial step toward finalizing a bilateral trade deal.

Germany's Exemption Efforts

During the dialogue, Goyal referred to reports that Germany is seeking an exemption from US sanctions on Rosneft's German operations. Rosneft's German subsidiaries, which include stakes in Schwedt, MiRo, and Bayernoil refineries, were placed under government trusteeship in 2022 following Russia's full-scale invasion of Ukraine. A spokesperson from Germany's Economy Ministry stated that US sanctions should not apply to these German businesses since they are decoupled from the Russian parent and are under German state control.

Following this, the UK issued a special license allowing businesses to engage with two German subsidiaries of Rosneft, citing that they are under German state control.