Latest news with #Nord
Time of India
3 days ago
- Business
- Time of India
Explained: What are EU's fresh sanctions on Russia? Here's what they mean
The European Union unveiled its 18th package of sanctions against Russia, aiming to further squeeze Moscow's oil revenues and financial networks over its ongoing war in Ukraine. Approved on Friday, the new measures include a series of toughened restrictions focused largely on the energy sector, shipping, and financial dealings. Here's a what the latest sanctions include: 1. Russian oil: A fresh price cap At the heart of this package is a new price cap on Russian oil. The EU plans to impose a moving price ceiling, pegged at 15% below the average market price of Russian crude. Currently, that would put the cap at around $47.60 per barrel, a significant drop from the $60 limit introduced by the G7 in December 2022. This lower threshold is designed to curb Russia's energy income while avoiding a shock to global oil supplies. The measure takes effect from 3 September, with a 90-day transition period for existing contracts. Under the new rules, any crude purchased above the cap cannot be shipped, insured or reinsured by EU firms, as per a Reuters report. The European Union and Britain had been urging the G7 to reduce the existing $60 price cap on Russian oil, arguing that falling oil futures had rendered it ineffective. However, opposition from the United States stalled any collective action, prompting the EU to act independently. Still, the bloc faces limits in enforcing the measure, as oil is predominantly traded in US dollars and payment clearing is largely controlled by American banks. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 2 BHKs starts at ₹ 72.6 Lakh | No Floor rise | Zero PLC Mahindra Happinest Tathawade Get Quote Undo After a six-month grace period, the EU will no longer import petroleum products made from Russian oil, even if they're refined elsewhere. This rule excludes imports from Norway, Britain, the US, Canada, and Switzerland. The EU is ending the Czech Republic's exemption from the bloc-wide seaborne Russian oil ban, after the country shifted entirely to alternative suppliers. The EU sanctions package also targets India's Nayara oil refinery, in which Russia's largest oil producer, Rosneft, holds a major share. 3. Targeting the 'Shadow Fleet' In an effort to disrupt Russia's workaround using ageing tankers: 105 additional ships have been banned from EU ports and waters. These include vessels engaging in ship-to-ship transfers, a common method used to mask the origin of Russian oil. The total number of sanctioned ships now exceeds 400, according to Reuters. The EU also blacklisted a private operator of an international flag registry and an entity involved in Russia's liquefied natural gas (LNG) sector, though it did not disclose their names. 4. Nord Stream: Total cut-off The EU will ban all transactions linked to the Nord Stream gas pipelines, which run under the Baltic Sea. This includes the provision of goods and services to the infrastructure. 5. Financial sector: A blanket ban In a major escalation, the EU will now prohibit all transactions with Russian financial institutions, many of which are already cut off from SWIFT. The ban also targeted Russia's sovereign wealth fund, the Russian Direct Investment Fund (RDIF). EU countries agreed to lower the threshold for penalising foreign financial entities found to be helping Russia evade sanctions or fund the war effort. 6. Export restrictions and new blacklist entries The bloc will bar exports of certain chemicals, plastics and machinery to Russia. 26 new entities have been added to the sanctions list for circumventing restrictions, including, 7 in China, 3 in Hong Kong, 4 in Turkey. 7. Delays and diplomatic hurdles The approval of this package wasn't smooth. Slovakia and Malta initially delayed the rollout: Slovakia objected due to concerns about an upcoming EU plan to ban Russian gas imports by 2028. It lifted its veto earlier this week after receiving guarantees from the EU to mitigate potential losses. How did India react? The ministry of external affairs on Friday hit out at the European Union's 'unilateral' sanctions on Russia, criticising the bloc's 'double standards' in energy trade. MEA spokesperson Randhir Jaiswal said in a statement in post on X, "We have noted the latest sanctions announced by the European Union. India does not subscribe to any unilateral sanction measures. We are a responsible actor and remain fully committed to our legal obligations." The MEA further emphasised that ensuring energy security is a top priority for the Indian government to meet the essential needs of its citizens. 'We would stress that there should be no double standards, especially when it comes to energy trade,' the statement added. The EU's latest sanctions against Russia over the Ukraine war include measures targeting an Indian refinery partly owned by Rosneft. The Russian energy giant holds a 49.13% stake in Nayara Energy Ltd, formerly Essar Oil. Nayara operates a major refinery in Vadinar, Gujarat, with an annual capacity of 20 million tonnes, and runs over 6,750 fuel stations across India. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
4 days ago
- Business
- Time of India
MEA criticises EU sanctions on Russia that include Gujarat refinery
The Ministry of External Affairs on Friday said it does not support "unilateral sanctions" by the European Union, after Brussels imposed penalties on Russia that included a Rosneft oil refinery in Gujarat . The "India does not subscribe to any unilateral sanction measures. Government of India considers the provision of energy security a responsibility of paramount importance to meet the basic needs of its citizens," MEA spokesperson Randhir Jaiswal said in a post on X. We would stress that there should be no double standards, especially when it comes to energy trade, he added. — MEAIndia (@MEAIndia) The EU has imposed sanctions on the Indian oil refinery of Russian energy giant Rosneft and lowered the oil price cap, as part of a new raft of measures against Russia over its war in Ukraine. The fresh sanctions package on Russia included new banking restrictions, and curbs on fuels made from Russian crude oil. The lowered oil price cap - currently set at $60 per barrel - means Russia will be forced to sell its crude at reduced rates to buyers like India. As the second-largest purchaser of Russian oil, India stands to benefit from this move. Russian crude currently accounts for nearly 40 per cent of India's total oil imports. Rosneft owns 49.13 per cent stake in Nayara Energy Ltd, formerly Essar Oil Ltd. Nayara owns and operates a 20 million tonne a year oil refinery at Vadinar in Gujarat as also over 6,750 petrol pumps. An investment consortium SPV, Kesani Enterprises Company holds 49.13 per cent stake in Nayara. Kesani is owned by Russia's United Capital Partners (UCP) and Hara Capial Sarl, a wholly-owned subsidiary of Mareterra Group Holding (formerly Genera Group Holding S.p.A.). EU sanctions means Nayara cannot export fuel such as petrol and diesel to European countries. Among the sanctions announced were ban on Nord Stream pipelines, and a lower cap on price at which Russian can export oil. In December 2022, the Group of Seven (G7) nations imposed a $60 a barrel price cap on Russian oil sold to third countries. Under this mechanism, Western insurance and shipping services could only be used if the oil was sold at or below the capped price. The goal was to restrict Russia's oil revenues while maintaining stability in global energy supplies. However, the cap faced criticism for being largely ineffective in achieving its intended impact. The European Union and Britain had been pushing to lower the price cap after a fall in global oil prices made the current $60 cap nearly irrelevant.
News18
5 days ago
- Business
- News18
EU imposes sanctions on Rosnefts India refinery, lowers oil price cap
New Delhi, Jul 18 (PTI) The European Union on Friday imposed sanctions on the Indian oil refinery of Russian energy giant Rosneft and lowered the oil price cap, as part of a new raft of measures against Russia over its war in Ukraine. The fresh sanctions package on Russia included new banking restrictions, and curbs on fuels made from Russian crude oil. The lowered oil price cap – currently set at USD 60 per barrel – means Russia will be forced to sell its crude at reduced rates to buyers like India. As the second-largest purchaser of Russian oil, India stands to benefit from this move. Russian crude currently accounts for nearly 40 per cent of India's total oil imports. 'For the first time, we're designating a flag registry and the biggest Rosneft refinery in India," EU foreign policy chief Kaja Kallas said in a post on X. Rosneft owns 49.13 per cent stake in Nayara Energy Ltd, formerly Essar Oil Ltd. Nayara owns and operates a 20 million tonne a year oil refinery at Vadinar in Gujarat as also over 6,750 petrol pumps. An investment consortium SPV, Kesani Enterprises Company holds 49.13 per cent stake in Nayara. Kesani is owned by Russia's United Capital Partners (UCP) and Hara Capial Sarl, a wholly-owned subsidiary of Mareterra Group Holding (formerly Genera Group Holding S.p.A.). 'We are standing firm. The EU just approved one of its strongest sanctions package against Russia to date," Kallas said. 'We're cutting the Kremlin's war budget further, going after 105 more shadow fleet ships, their enablers, and limiting Russian banks' access to funding." Among the sanctions announced were ban on Nord Stream pipelines, and a lower cap on price at which Russian can export oil. In December 2022, the Group of Seven (G7) nations imposed a USD 60 a barrel price cap on Russian oil sold to third countries. Under this mechanism, Western insurance and shipping services could only be used if the oil was sold at or below the capped price. The goal was to restrict Russia's oil revenues while maintaining stability in global energy supplies. However, the cap faced criticism for being largely ineffective in achieving its intended impact. The European Union and Britain had been pushing to lower the price cap after a fall in global oil prices made the current USD 60 cap nearly irrelevant. While Kallas did not specify the new price cap, reports suggest it will initially be set between USD 45 and USD 50, with automatic revisions at least twice a year based on market conditions. While the lower price cap stands to benefit importing countries like India, continued purchases may be at risk if the US follows through on its threat of sanctions. Earlier this week, President Donald Trump warned that nations buying Russian exports could face sanctions or steep tariffs if Moscow does not reach a peace agreement with Ukraine within 50 days. Russia typically supplies crude oil to India on a delivered basis – handling both shipping and insurance for the cargo and vessels. Under the price cap mechanism, Russia kept the official invoice price of crude below USD 60 per barrel to comply with sanctions, but charged higher rates for transportation services. This practice has allowed it to effectively realize prices closer to market rates despite the cap. The oil price cap was widely viewed as ineffective, as much of Russia's crude was being transported via a 'shadow fleet'—vessels operating outside the control of G7-based shipping services. A significant portion of Russia's seaborne oil exports was reportedly carried by tankers that were not flagged, owned, or operated by companies based in the G7, EU, Australia, Switzerland, or Norway, and were not insured by Western protection and indemnity clubs. The oil price cap was also widely viewed as ineffective, as much of Russia's crude was being transported via a 'shadow fleet' – vessels operating outside the control of G7-based shipping services. A significant portion of Russia's seaborne oil exports was reportedly carried by tankers that were not flagged, owned, or operated by companies based in the G7, EU, Australia, Switzerland, or Norway, and were not insured by Western protection and indemnity clubs. Russia's shadow tanker fleet expanded as the steep discounts on its crude oil narrowed – from record levels of around USD 40 per barrel below Dated Brent in 2022, following the invasion of Ukraine, to just USD 3–4 per barrel currently. 'We are putting more pressure on Russia's military industry, Chinese banks that enable sanctions evasion, and blocking tech exports used in drones," Kallas said. 'Our sanctions also hit those indoctrinating Ukrainian children. We will keep raising the costs, so stopping the aggression becomes the only path forward for Moscow." Europe imports fuels like diesel and petrol from India. Indian refiners typically buy large amounts of Russian crude, which is refined to fuels like petrol and diesel and exported to EU. Oil income is the linchpin of Russia's economy , allowing President Vladimir Putin to pour money into the armed forces without worsening inflation for everyday people and avoiding a currency collapse. Other measures adopted by EU include sanctions on dozens more vessels in Russia's shadow fleet of oil tankers, bringing the total above 400, as well as on several entities and traders that work with the covert fleet. Besides more goods have been added to existing export lists of restricted items used by Moscow's war machine while sanctions have been imposed on several entities, including in China and elsewhere, that are seen to aid Russia skirt the bloc's trade and energy restrictions. Also targeted was the Nord Stream pipelines between Russia and Germany to prevent Moscow from generating any revenue from them in future. The pipelines were built to carry Russian natural gas to Germany but are not in operation. The sanctions also targeted Russia's banking sector, with the aim of limiting the Kremlin's ability to raise funds or carry out financial transactions. Two Chinese banks were added to the list. PTI ANZ ANU (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments First Published: July 18, 2025, 14:45 IST News agency-feeds EU imposes sanctions on Rosnefts India refinery, lowers oil price cap Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Straits Times
5 days ago
- Business
- Straits Times
EU approves new Russia sanctions with lower oil price cap
Find out what's new on ST website and app. FILE PHOTO: European Union High Representative for Foreign Affairs and Security Policy Kaja Kallas arrives at the 5th EU-Southern Neighbourhood Ministerial meeting in Brussels, Belgium, July 14, 2025. REUTERS/Yves Herman/File Photo BRUSSELS - The European Union on Friday agreed an 18th package of sanctions against Russia over its war in Ukraine, including measures aimed at dealing further blows to the Russian oil and energy industry. The package aims to lower the G7's price cap for buying Russian crude oil to $47.6 per barrel, diplomats told Reuters. "The EU just approved one of its strongest sanctions packages against Russia to date," EU foreign policy chief Kaja Kallas said on X. "We will keep raising the costs, so stopping the aggression becomes the only path forward for Moscow." G7 PRICE CAP INEFFECTIVE SO FAR Yet Russia has so far managed to sell most of its oil above the previous price cap as the current mechanism makes it unclear who must police its implementation, and traders doubt the new EU sanctions will significantly disrupt Russian oil trade. The package also has a ban on transactions related to Russia's Nord Stream gas pipelines under the Baltic Sea and on Russia's financial sector. Top stories Swipe. Select. Stay informed. Singapore 30% of aviation jobs could be redesigned due to AI, automation; $200m fund to support workers: CAAS Singapore HSA looking to get anti-vape cyber surveillance tool with AI capabilities Singapore Alleged Kpod peddler filmed trying to flee raid in Bishan charged with 6 offences Singapore Residents in South West District get help to improve employability, find career opportunities Singapore Jail for contraband cigarette syndicate member over conspiracy to give bribes to security officer Life Kinokuniya opens third bookstore in Raffles City, weeks ahead of schedule Business DBS shares rally to a new record as STI clocks yet another high Singapore 5 foreigners charged over scheme to deliberately get arrested in S'pore to sell sex drugs Kallas said the sanctions also targeted 105 ships in Russia's "shadow fleet", the term used by Western officials for ships that Moscow uses to circumvent oil sanctions, and "Chinese banks that enable sanctions evasion". She did not name the banks. Ukrainian President Volodymyr Zelenskiy called the decision "essential and timely" as Russia intensifies its air war on Ukrainian cities and villages. And Foreign Minister Andrii Sybiha said: "Depriving Russia of its oil revenues is critical for putting an end to its aggression." The Group of Seven Western economic powers have tried to impose a price cap on purchases of Russian oil price since December 2022. It aims to ban trade in Russian crude bought at a higher price by prohibiting shipping, insurance and re-insurance companies from handling tankers carrying such crude. US DECLINES TO BACK EUROPE ON PRICE CAP The European Union and Britain have been pushing to lower the cap for the last two months after a fall in oil futures made the current level of $60 a barrel largely irrelevant. [O/R] But the United States has resisted, leaving the EU to move forward on its own, but without real power to enforce the measure, analysts and oil traders say. As the dollar dominates global oil transactions, and U.S. financial institutions play the central role in clearing payments, the EU has no means to block trades by denying access to dollar clearing. Agreement on the new EU package was held up for weeks as Slovakian Prime Minister Robert Fico demanded concessions on a separate plan to phase out EU dependence on Russian oil and gas. Fico announced on Thursday night that he was ending his opposition. Countries such as Greece, Cyprus and Malta had expressed concerns about the effect of the oil price cap on their shipping industries. But Malta, the last of the trio to hold out, also came on board on Thursday. REUTERS
&w=3840&q=100)
First Post
5 days ago
- Business
- First Post
EU targets Putin's oil income over Ukraine war, sanctions Russia-owned refinery in India
In the 18th round of sanctions on Russia over its war on Ukraine, the European Union (EU) has targeted Vladimir Putin's income from oil sales. The EU has sanctioned an Indian refinery for the first time in which Russia has a 49% stake. read more With the 18th package of sanctions on Russia over its war on Ukraine, the European Union (EU) on Friday targeted Russia's oil revenue and sanctioned an Indian refinery for the first time. Under the latest sanctions, the EU lowered the price cap on Russian oil to 15 per cent below the market price to hit at Russian leader Vladimir Putin's income from the sale of oil that he uses to fund the war on Ukraine and the aggression on Europe. STORY CONTINUES BELOW THIS AD For the first time, the bloc has sanctioned a flag registry and the biggest Rosneft refinery in India, said EU foreign minister Kaja Kallas. Kallas was referring to the Vadinar oil refinery in which Russian state-owned Rosneft has a 49 per cent stake. It is the second-largest refinery in India. Kallas further said, 'We're cutting the Kremlin's war budget further, going after 105 more shadow fleet ships, their enablers, and limiting Russian banks' access to funding. Nord Stream pipelines will be banned. A lower oil price cap. We are putting more pressure on Russia's military industry, Chinese banks that enables sanctions evasion, and blocking tech exports used in drones. (sic)' We are standing firm. The EU just approved one of its strongest sanctions package against Russia to date. We're cutting the Kremlin's war budget further, going after 105 more shadow fleet ships, their enablers, and limiting Russian banks' access to funding. (1/3) — Kaja Kallas (@kajakallas) July 18, 2025 What's in EU's latest Russia sanctions The biggest focus has been to hit at Russia's income from the sale oil. Revising the price cap policy introduced in 2022, the EU has now lowered the price cap from existing $60 per barrel to 15 per cent below the market price, which effectively takes the cap to $47.6. As the cap has now been linked to market price, it will change with time. STORY CONTINUES BELOW THIS AD Under the price cap regime, shipping, insurance, and financial firms face sanctions if they take part in the sale of Russian oil above the capped price. The regime is aimed at minimising Russian income from the sale of oil. Additionally, the EU has blacklisted more than 100 vessels in the 'shadow fleet' of tankers used by Russia to circumvent oil export restrictions, according to AFP. The EU has also sanctioned two Chinese banks and has expanded a transaction ban on dealings with Russian banks and has imposed more restrictions on the export of 'dual-use' goods to Russia that have the potential of being used in the war in Ukraine. The EU has also shuttered the defunct Nord Stream 1 and 2 gas pipelines. What EU sanctions mean for India In addition to the Vadinar refinery, the EU has sanctioned the Indian flag registry. A flag registry refers to the official list of all the ships that fly a country's flags. Sanctioning a country's flag list gives the EU power to punish ships over India-flagged ships' purported role in the sale of Russian oil in violation of sanctions. STORY CONTINUES BELOW THIS AD To be sure, the EU has not sanctioned the sale of Russian oil but has sanctioned the sale of Russian oil above the price cap.
