India’s Nayara Energy condemns EU sanctions as ‘unjust’ attack on Indian sovereignty
Indian refiner Nayara Energy strongly condemned European Union sanctions, imposed over the company’s links to Russian oil giant Rosneft, calling the restrictions ‘unjust and unilateral’ and accusing the bloc of undermining India’s sovereignty and energy security.
‘We categorically state that this unilateral move by the European Union is founded on baseless assertions, representing an undue extension of authority that ignores both international law and the sovereignty of India,’ the company said in a media statement Monday.
Nayara Energy, which operates India’s second-largest single-site refinery, accused European countries of hypocrisy, noting that ‘while many European countries continue to import Russian energy through various sources, they take a high moral ground by chastising and sanctioning an Indian asset for processing Russian crude largely used by its domestic population of 1.4 billion Indians and businesses’.
The EU included Nayara Energy in its 18th sanctions package against Russia, approved Friday, marking the first time the bloc has targeted a refinery in India as part of efforts to reduce Russian energy revenues funding the war in Ukraine. The sanctions were imposed primarily over the company’s ownership ties to Russia’s Rosneft, which holds a 49.13% stake in Nayara Energy.
Rosneft has also condemned the EU sanctions as ‘unjustified and illegal’, claiming the restrictions violate international law. Rosneft insisted it is ‘not a controlling shareholder of Nayara Energy’ and emphasised that ‘the enterprise is managed by an independent Board of Directors’.
The Indian refinery emphasised its role as a vital part of the nation’s energy infrastructure, contributing approximately 8% of the country’s total refining capacity, 7% of India’s retail petrol pump network, and an estimated 8% of polypropylene capacity while employing over 55,000 direct and indirect workers.
‘Such actions not only undermine India’s interests, but also risk disrupting the uninterrupted supply of petroleum products that are essential to millions of Indian citizens and industries,’ Nayara Energy 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 company added.
Ameeta Duggal, of DGS Associates in New Delhi, said that ‘while India has reinforced its position of not subscribing to secondary sanctions, it will be left to Nayara Energy to explore the legal recourse available to it, which would include Nayara Energy challenging the listing in the EU and seeking to get itself de-listed’.
The secondary sanctions restrict Nayara Energy from procuring supplies from or selling to any EU entity, Duggal noted. However, ‘Nayara Energy operates more to serve the energy demands within India, which it can continue to do’ despite the EU restrictions, she observed.
‘Nayara Energy is not a new entity, nor is Rosneft’s minority stake in the company. This is an old company that has been operating in India for decades and it can continue to operate with the restriction of not being able to transact with the EU entities,’ Duggal noted.
Nayara Energy assured stakeholders that ‘every aspect of our business, including all domestic operations, continues to function normally’ and that it has taken measures to ensure ‘no disruption to our daily operations or to our long-term strategic objectives’.
Meanwhile, Indian media reports confirm that the company has faced growing avoidance by oil shippers and traders since the sanctions were imposed, resulting in logistical disruptions and canceled cargo pickups at its Vadinar port in Gujrat.
Nayara has reportedly responded by tightening payment terms, now requiring advance payments or letters of credit before fuel shipments are loaded, reflecting broader concerns over compliance and financial risk.
The company did not reply to a request for comment.
https://www.nayaraenergy.com/storage/news-rooms/July2025/PKeZvPqJT3Gjc589oGQf.pdf
