The European Union's (EU) most recent sanction on Nayara Energy's 20-million-ton refinery in Vadinar, Gujarat, was deemed ‘unjustified and illegal’ by Moscow-based Rosneft Oil Company.
According to the Russian state-owned energy giant, the Nayara Energy refinery is a strategically significant asset for the Indian energy sector, offering a steady supply of petroleum products to the local market.
Sanctions against the refinery will have a detrimental effect on India's economy and pose a direct danger to its energy security.
Additionally, Rosneft stated that Nayara Energy, in which it owns a 49 percent holding, will take action to safeguard the interests of its customers and shareholders.
Rosneft made it clear that it does not own a majority stake in Nayara Energy; rather, the corporation owns less than 50 percent of the authorized capital of the business. It stated that an independent board of directors oversees the company's management.
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The EU announced sanctions on Nayara's Vadinar refinery and reduced the price restriction on Russian oil by 15 percent, from $60 to $47.6 per barrel, in an effort to attack Russia's capacity to generate income from its energy and oil industries while waging war against Ukraine. It also placed sanctions on more "shadow fleet ships," which are primarily involved in the transportation of crude oil from Russia, among other actions.
In addition, Rosneft stated that the EU's justifications for levying sanctions are wholly implausible and untrue.
The business activity of Nayara Energy, a legally recognized organization in India, is focused on asset development.
The organization is fully subject to Indian taxation, it stated, adding that shareholders of Nayara Energy have never received dividend payments and that the company's profits have only ever been utilized to expand its refinery, petrochemicals, and retail network in India.
The statement went on to say that these sanctions are instances of politically motivated limitations being implemented extraterritorially, which clearly violates international law and encroaches on a sovereign state's economic interests.
Indeed, with roughly 6,500 gasoline bunks out of the approximately 90,000 petrol pumps in India—a market that is dominated by state-owned oil and gas companies—Nayara has the largest private sector retail fuel network in the nation.
The statement went on to say that the EU's actions show utter disrespect for third-country sovereignty as well as international law.
According to Rosneft, the EU's harmful policy of undermining the world's energy markets includes these sanctions. According to the Russian energy major, the EU's use of unfair competition practices is exemplified by the limits placed on Nayara Energy.
"The bloc will ban the import of refined petroleum products made from Russian crude oil and coming from any third country – with the exception of Canada, Norway, Switzerland, the UK, and the United States – thereby preventing Russia's crude oil from reaching the EU market through the back door," the Council of the European Union said.
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Randhir Jaiswal, the ministry of external affairs' spokesperson, stated late Friday night that India opposes any unilateral sanctions measures in response to the EU's action.