The European Union's latest sanctions on Russia, clarified by Herve Delphin, the EU Ambassador to India, focus on limiting Russia’s war economy by targeting its oil, energy, banking, and defence sectors, while taking steps to avoid disrupting the global oil market and supply chains.

The 18th package lowers the price cap on Russian oil exports from $60 to $47.6 per barrel, aiming to reduce Russia’s oil revenue used to finance military actions in Ukraine. This cap is dynamically adjustable in line with market prices, ensuring both market flexibility and imposing a consistent discount on Russian oil—giving buyers greater negotiating strength and helping stabilize global markets.

In addition, the EU has placed new restrictions on refined oil products made from Russian crude, banning their export to Europe even when processed in third countries, such as refineries in India where Russian entity Rosneft holds a major stake. This measure is specifically designed to close loopholes that previously allowed Russian oil revenues to be indirectly funnelled through sales of refined products into the European market.

Another significant element of the sanctions is the targeting of the so-called “shadow fleet,” consisting of vessels used to clandestinely transport Russian oil and evade sanctions. The EU has sanctioned 450 shadow fleet tankers, barring them from European ports and services, further tightening control on Russia’s export mechanisms.

According to Delphin, these measures are carried out diligently to ensure that they do not prevent other countries—including India—from purchasing Russian oil, thereby seeking to avoid any disruption to the global oil supply.

The sanctions also mean substantial financial losses for Russia, which the EU claims have already cost the Russian government €450 billion in potential revenue, a figure that could have otherwise supported its military expenditure.

Roughly one-third of Russia’s government revenues come from oil, while 40% of its public spending—equivalent to 6-7% of GDP—is allocated to military efforts. The EU has already reduced its reliance on Russian oil by 90% and plans to completely eliminate Russian energy imports by 2026-2027.

India, in response, has firmly rejected the applicability of these unilateral EU sanctions. The Ministry of External Affairs emphasized that India does not subscribe to any unilateral sanction measures and highlighted its commitment to fulfilling its legal obligations while prioritizing national energy security. 

India has called for the avoidance of double standards in global energy trade, especially since energy security is seen as a paramount responsibility to meet the basic needs of its citizens. In light of these developments, India has reaffirmed its position as a responsible global actor, indicating it will continue to source energy as needed and remains confident it can meet its needs should Russian supplies face disruption.

The new EU measures represent the first time since the Ukraine conflict began that an Indian energy firm (the Vadinar refinery in Gujarat) has been directly affected by sanctions, reflecting a widening scope in the EU’s enforcement approach.

Nevertheless, while imposing stricter measures and trying to limit Russian revenues, the EU envoy asserted that these actions are designed not to hamper global supply or legitimate purchases by third countries. The EU also highlighted strong domestic support for these measures, even if they could lead to higher import costs for Europe itself.

Lastly, Delphin reiterated the EU’s view of Russia’s actions in Ukraine as illegal aggression, stating that the bloc’s sanctions are part of a responsible effort to degrade Russia’s ability to fund its war against Ukraine and to seek a return to peace through diplomatic means.

Based On ANI Report