EU Sanctions on Indian Refinery: Navigating the Geopolitics of Russian Oil
UPSC Relevance
Prelims: International Relations (EU, G7, Russia-Ukraine conflict), Indian Economy (Energy Security, Refineries, FDI), Current Events.
Mains:
GS Paper 2: Effect of policies and politics of developed countries on India’s interests; Bilateral, regional and global groupings and agreements involving India.
GS Paper 3: Indian Economy and issues relating to planning, mobilization of resources; Infrastructure: Energy.
Key Highlights from the News
As part of new sanctions targeting Russia's energy sector, the European Union (EU) has added Nayara Energy Ltd., an Indian refinery based in Gujarat, to its sanctions list.
The EU reduced the oil price cap for Russian oil from $60 to $47.6 per barrel.
An import ban on refined petroleum products made from Russian crude oil has also been imposed in the European Union.
The Russian state-owned company Rosneft holds a 49.13% stake in Nayara Energy.
Sanctions against Russia's 'shadow fleet,' a network of ships used to transport sanctioned oil, have also been strengthened.
Full-fledged sanctions, including travel bans and asset freezes, have been imposed on Nayara Refinery.
Discussions are also taking place in the US Congress about imposing similar sanctions on countries like India, China, and Brazil.
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