New Delhi: Nayara Energy has strongly condemned the European Union’s decision to impose sanctions on its Vadinar refinery in Gujarat, calling the move unilateral, baseless, and a threat to India’s energy security. The company said the restrictive measures risk disrupting supplies of petroleum products critical to millions of Indian citizens and industries, and vowed to pursue all legal and appropriate avenues in response.
In an official statement issued Monday, the privately held Indian oil refiner described the EU’s sanctions as “an undue extension of authority that ignores both international law and the sovereignty of India.” It said the rationale for the sanctions was “founded on baseless assertions,” especially when many EU member states continue to import Russian energy through alternate routes while taking “a high moral ground by chastising and sanctioning an Indian asset.”
Nayara Energy, which operates a 20 million tonnes per annum refinery in Vadinar and a network of over 6,750 petrol pumps, reiterated its role as a key player in India’s energy infrastructure. The company said it contributes about 8 percent of India’s total refining capacity, 7 percent of the fuel retail network, and 8 percent of the country’s polypropylene capacity, and directly or indirectly employs over 55,000 people.
The company also reaffirmed its plan to invest over Rs 70,000 crore in long-term projects, including petrochemicals, ethanol plants, marketing infrastructure, ESG initiatives, and upgrades to refinery reliability. Since August 2017, Nayara said it has already invested Rs 14,000 crore in domestic projects, and stressed that it operates fully under Indian law and tax jurisdiction, having paid over Rs 2.5 lakh crore in taxes during this period.
“We urge all stakeholders to respect the principles of sovereignty and fair international conduct,” the company said. “We are actively exploring all legal and appropriate avenues to address this situation and to protect the interests of our operations, employees, and our stakeholders.”
The sanctions were part of the EU’s 18th package of restrictions against Russia over its war in Ukraine and target firms allegedly aiding Russia’s revenue streams. Nayara Energy has been included owing to Rosneft’s 49.13 percent stake in the company. An equivalent stake is held by Kesani Enterprises, an SPV backed by Russia’s UCP and Mareterra Group Holding (formerly Genera Group).
Responding separately, Rosneft Oil Company also denounced the EU move as illegal and politically motivated, calling it a “blatant violation of international law and the economic interests of a sovereign state.” The Russian oil giant clarified that it is not a controlling shareholder in Nayara and that the Indian firm is governed by an independent board.
“The Nayara refinery is a strategically important asset for the Indian energy industry,” Rosneft said in a statement issued on July 20. “Sanctions against it directly threaten India's energy security and will have a negative impact on its economy.”
The company also accused the EU of “unfair competition practices” and said it expects Nayara’s shareholders and the governments of both India and Russia to support efforts to protect its legitimate interests.
Despite the geopolitical headwinds, Nayara Energy has reaffirmed its commitment to India’s energy market, stating its mission as “In India, for India,” with a focus on serving domestic demand through its private retail network, institutional sales, and partnerships with public-sector oil companies. It also highlighted its annual CSR budget of ₹200 crore and ongoing efforts to ensure uninterrupted operations.
“We firmly believe that there is no impact whatsoever on Nayara Energy’s interests, and we remain steadfast in our dedication to delivering value to our stakeholders,” the company added.