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India has sharply criticized the European Union’s latest round of sanctions targeting Russia, denouncing what it calls a blatant double standard that threatens India’s energy security and economic interests. The move highlights India’s delicate balancing act amid escalating geopolitical tensions caused by the Ukraine conflict, as well as its growing energy partnership with Russia.
On July 18, the Ministry of External Affairs (MEA) of India released an official statement asserting that New Delhi “does not subscribe to any unilateral sanction measures” and underscored India’s status as a “responsible actor” in the global energy market. The statement strongly emphasized the country’s commitment to securing energy supplies for its population, while urging the international community to avoid double standards, especially regarding energy trade.
The EU unveiled its 18th package of sanctions on Russia amid the prolonged war in Ukraine, aiming to tighten the economic noose on Moscow by targeting its vital oil sector. These measures notably include a ban on the import of refined petroleum products derived from Russian crude oil. More controversially for India, the sanctions specifically target Nayara Energy’s Vadinar refinery in Gujarat-India’s second-largest private refinery-which processes Russian crude oil into refined fuels.
Nayara Energy, an Indo-Russian joint venture, is partially owned by Russian oil giant Rosneft, which holds a 49% stake. The Vadinar refinery can process up to 20 million tonnes of crude annually, making it a significant player in India’s oil refining industry. The refinery was acquired by a Rosneft-led consortium from India’s Essar Group in 2017 for $12.9 billion, marking the largest foreign investment in the sector at the time.
The EU has also imposed sanctions on India’s flag registry, the official list of ships authorized to fly the Indian flag. This means any India-flagged vessel transporting Russian oil could face EU penalties, a move that could disrupt India’s maritime logistics related to energy imports.
Since Russia’s full-scale invasion of Ukraine in February 2022, India’s crude oil imports from Moscow have surged dramatically. Russia has become one of India’s primary oil suppliers, accounting for nearly 40% of the country’s crude imports. This relationship has helped India access discounted oil supplies amid global market volatility, which has been crucial in managing inflation and energy costs domestically.
Meanwhile, India’s energy industry has grown into a major exporter of refined fuels to Europe, turning the EU into an important customer for Indian refined petroleum products. This creates a complex dynamic, as the EU simultaneously bans Russian crude imports but continues to rely on refiners like India that process Russian oil into finished products.
The EU’s sanctions, therefore, put India in an awkward position: on one hand, it must maintain energy security by buying Russian crude oil; on the other hand, it must preserve access to the lucrative European market for its refined fuel exports.
India’s MEA statement stressed that energy security is a “responsibility of paramount importance to meet the basic needs of its citizens.” It warned against “double standards” in sanction regimes that unfairly penalize countries like India, which are making pragmatic energy choices amid a complicated geopolitical landscape.
“The Government 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,” the spokesperson said.
By calling out the EU’s unilateral sanction approach, India signaled its unwillingness to be coerced into political decisions that jeopardize its energy supplies and economic interests. India’s position also reflects a broader skepticism of Western-led sanctions regimes, which many countries view as lacking legitimacy and often disproportionately harming developing economies.
The EU sanctions put significant pressure on Indian companies involved in the oil and gas sector. Nayara Energy’s Vadinar refinery is directly targeted due to Rosneft’s ownership stake, and the designation of India’s flag registry threatens to disrupt maritime operations.
Reliance Industries, another titan of India’s petrochemical, refining, and oil and gas exploration industry, also faces risks from the EU’s sanctions. Reliance, like Nayara, exports refined petroleum products to the European market. The ban on fuels derived from Russian oil means Reliance may face barriers to continuing its trade with Europe, potentially affecting its revenue and growth.
An article in The Economic Times on July 19 cited industry executives and analysts expressing concerns that these sanctions could “exclude major Indian refiners from the EU market.” Given Europe’s importance as a customer base, the sanctions pose serious strategic challenges for India’s energy firms.
India’s stance on the EU sanctions reflects a broader geopolitical reality. While India has condemned Russia’s invasion of Ukraine and supported diplomatic efforts for peace, it has resisted aligning fully with Western-led sanctions against Moscow. This position is informed by several factors:
Strategic Partnership with Russia: India and Russia have a decades-long strategic partnership that encompasses defense, energy, and technology cooperation. Despite international pressure, India continues to rely on Russian military hardware and energy supplies.
Non-Aligned and Multi-Polar Approach: India pursues a foreign policy that values strategic autonomy and avoids being drawn into exclusive blocs. The government seeks to maintain good relations with multiple powers, including the US, EU, Russia, and China.
Energy Security Needs: With a rapidly growing economy and increasing energy demands, India prioritizes stable and affordable energy supplies above political considerations.
The EU sanctions, by targeting India’s energy links with Russia, complicate this balancing act. New Delhi’s firm pushback indicates it will not allow external pressure to dictate its energy policy or economic partnerships.
India’s sharp criticism of the EU’s sanctions underscores a deep dissatisfaction with what it perceives as unfair treatment and double standards in the global energy trade. The country insists that energy security must be recognized as a fundamental need and that sanction policies should be designed with sensitivity to the realities faced by importing countries.
The situation highlights the complexities of geopolitics in the post-Ukraine war world, where global supply chains and trade are intertwined with conflict and diplomatic rivalries. For India, the challenge is to safeguard its energy needs, protect its economic interests, and uphold its principle of strategic autonomy in an increasingly polarized international environment.
As the EU pushes forward with its sanctions regime, it must reckon with the reality that countries like India will resist measures that threaten their energy security and economic well-being-particularly when such sanctions come with demands that ignore the geopolitical and market realities faced by emerging powers.
India’s response serves as a reminder that global governance on issues like sanctions and trade needs to be more inclusive and balanced, respecting the interests and necessities of all players on the world stage.
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Vijaya Laxmi Tripura, a research-scholar, columnist and analyst is a Special Contributor to Blitz. She lives in Cape Town, South Africa.
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