New Delhi: The European Union on Friday imposed sanctions on a Rosneft-linked refinery in India as part of a sweeping new package aimed at curbing Russia’s global oil revenues and countering its escalating hybrid threats. For the first time, the EU added to its sanctions list a Rosneft-operated asset outside Russia — the 20-million-tonne-per-year, Vadinar refinery in Gujarat, which is majority-owned by Nayara Energy. The refinery, where Rosneft holds a 49 percent stake, is now subject to restrictive measures for its role in processing and distributing Russian-origin crude.
The move marks a significant expansion of the EU’s sanctions architecture and signals growing scrutiny of Russian oil flows through third countries. The refinery’s inclusion was confirmed by Kaja Kallas, the EU High Representative for Foreign Affairs and Security Policy, who posted on X, “For the first time, we are targeting a Rosneft-owned refinery in India — to counter circumvention of our sanctions.”
The designation forms part of the European Union’s broader push to disrupt what it calls Russia’s “shadow oil supply chains.” In her statement, Kallas said the 18th EU sanctions package would specifically address loopholes, circumvention, and deceptive practices that allow Russian oil to reach global markets in defiance of existing bans.
“This is a strong signal — the EU will not tolerate sanctions evasion,” Kallas wrote. “We are targeting individuals and entities who are part of Russia's shadow fleet and complex sanctions circumvention networks.”
While the EU’s formal statement did not name Nayara or the Vadinar refinery explicitly, Kallas’s public confirmation leaves little doubt about the intent of the measure.
The refinery sanction was announced alongside a sharply worded statement by the EU High Representative on behalf of the entire bloc, condemning Russia’s “persistent hybrid campaigns” against the EU, its Member States, and partners.
“Russia’s destabilising hybrid campaigns are not limited to the cyber domain,” the EU said, citing attacks on electoral systems, critical infrastructure, media, and democratic institutions in Member States like France, Germany, Czechia, and Romania.
“These actions demonstrate deliberate and unacceptable behaviour,” the EU said, attributing many of the incidents to Russia’s military intelligence agency, the GRU.
The EU reaffirmed its earlier restrictive measures against GRU units (29155, 26165, and 74455) and pledged “a proactive, coherent and sustained response” through all available diplomatic, economic, and legal means.
While the EU has sanctioned Russian oil exports directly since 2022, this is the first time it has acted against infrastructure located in a major non-aligned partner country — in this case, India.
The designation may raise diplomatic friction between the EU and India, which has consistently maintained that its crude oil purchases from Russia are legitimate and in line with national interest. Ony a day earlier, Petroleum Minister Hardeep Singh Puri had defended India's decision to buy Russian crude oil, saying that the move averted a chaos in the global oil market. Without India's intervention, oil prices could have touched USD 130–200 per barrel, he said. By buying discounted Russian oil under a price cap, India has played a stabilising role in the global energy market, Puri had said. India has not responded to the EU measure so far.
The decision also raises questions about secondary sanctions exposure and the growing extraterritorial reach of EU restrictions.
Though the full scope of the EU’s 18th sanctions package has not yet been detailed in the public statement, Kallas indicated that it includes designations targeting Russia’s shadow fleet and oil trade networks, additional listings of individuals and entities involved in sanctions evasion, reinforced efforts to deter cyber and information warfare.
“This package demonstrates the EU’s resolve to take strong, proportionate, and coordinated action against Russia’s aggressive behaviour,” the EU said, while reiterating its full support for Ukraine and democratic institutions across Europe.
The fresh sanctions package also includes new banking restrictions and curbs on fuels made from Russian crude oil, broadening the EU’s crackdown on financial and energy networks supporting Moscow’s war economy.
In a related move, the EU is implementing a lowered price cap on Russian crude oil exports. The cap, which was previously set at USD 60 per barrel, has been reduced — a step that will force Russia to sell crude at discounted rates to major buyers like India.