NEW DELHI: Nayara Energy’s refinery in Gujarat’s Vadinar became the first in India to come under western sanctions as European Union Friday announced fresh curbs on Russian oil exports with the aim of throttling funding for Moscow’s war machine. “For the first time, we’re designating a flag registry and the biggest Rosneft refinery in India,” agencies quoted EU foreign policy chief Kaja Kallas as saying. India responded, saying it “does not subscribe to any unilateral sanction measures. We are a responsible actor and remain fully committed to our legal obligations.”

Dent in exports?

Can’t accept double standards on energy security, says IndiaGovt of India considers the provision of energy security a responsibility of paramount importance to meet the basic needs of its citizens. We would stress that there should be no double standards, especially when it comes to energy trade,” foreign ministry spokesperson Randhir Jaiswal said. The new measures include lowering the current price cap of $60/barrel, the threshold at which countries outside the G7 grouping of seven developed economies can buy Russian oil and access Western shipping as well as insurance services. Additionally, 105 off-radar vessels have been sanctioned, bringing the total to 223 out of a fleet of 400 oil tankers and limiting Moscow’s ability to evade the price cap. Rosneft, along with partners — commodities trader Trafigura and Russian investment firm UCP (United Capital Partners ) — had acquired the refinery with a capacity of 20 million tonnes per annum and associated assets from Essar Oil for $12.9 billion in 2017. Rosneft holds 49.1% in the venture. The refinery depends on exports to Europe and Africa as a small retail network of 6,750 fuel stations limits domestic sales. Curbs on products derived from Russian oil could cloud exports, impacting operations and threatening jobs. The curbs will also derail Rosneft’s bid to exit the venture because sanctions make repatriation of profit impossible. As reported by TOI earlier, the Russian giant had initiated talks with Reliance Industries Ltd for selling its stake in Nayara but the asking price of $20 billion was proving to be a hurdle. The new price cap will be graded in a band to the market average as subdued prices rendered the present cap less effective.