New EU sanctions could block Rosneft's Indian refinery sale plans, Bloomberg reports
New European Union sanctions could disrupt Russia's state-controlled oil giant Rosneft's plans to sell its stake in an Indian refinery, Bloomberg reported on July 18.
The EU earlier approved its 18th sanctions package aimed at increasing economic pressure on Russia as it continues its aggression against Ukraine. The measures target Russia's oil, financial, and defense sectors.
The new sanctions will also target Rosneft's largest Indian refinery, Nayara Energy Ltd., in which the company holds a 49.13% stake, Kaja Kallas, the bloc's top diplomat, reported.
Nayara owns nearly 7,000 fuel stations across India and its refinery processes 400,000 barrels per day, according to Bloomberg.
The sanctions come as Indian refineries have become the world's largest buyers of Russian seaborne crude, importing about 80% of Russian Urals oil, Bloomberg reports, citing Kpler data.
Exports of Russian seaborne crude doubled in 2023 to over 200,000 barrels daily.
India's private refiners account for about half of Russian oil imports, processing discounted Russian oil into products for global export.
According to Bloomberg, Rosneft had been in talks with rival refiner Reliance Industries about selling its stake in Nayara. Since Reliance exports fuels to Europe, the sanctions could make such a deal risky for the company.
Rosneft has also held talks with several potential buyers, including Saudi Aramco, the publication reported.
Rosneft has been seeking to exit its Indian venture after being unable to bring profits home due to sanctions.
The Russian company, along with partners, acquired Nayara from the Essar Group in 2017 for $12.9 billion. Nayara's ownership is currently split between Rosneft and investment consortium SPV Kesani Enterprises Co. Ltd. The remaining shares are held by retail investors.
