Rosneft, the Russian oil giant, has strongly criticized the European Union's decision to impose sanctions on Nayara Energy, an Indian refinery with ties to Rosneft. Rosneft has described the EU's actions as "unjustified and illegal". The company argues that these sanctions violate international law, infringe upon the economic interests of a sovereign state, and pose a direct threat to India's energy security.

According to Rosneft, the EU's sanctions are an example of politically motivated restrictions with extraterritorial reach. The company insists that the grounds for the sanctions are "far-fetched and false". Rosneft has also stated that it is not the controlling shareholder of Nayara Energy, holding less than 50% of the company's authorized capital, and that Nayara Energy is managed by an independent Board of Directors. They emphasize that Nayara Energy is an Indian legal entity that is taxed entirely in India, and whose profits are reinvested into the company. Rosneft asserts that shareholders have never received dividend payments.

The EU's sanctions against Nayara Energy are part of a broader package of measures targeting Russia in response to the conflict in Ukraine. These measures include new banking restrictions and curbs on fuels made from Russian crude oil. The EU has also lowered the oil price cap, which may compel Russia to sell its crude at reduced rates to countries like India.

Rosneft views the sanctions as a "destructive policy aimed at destabilizing global energy markets" and an example of "unfair competition practices". The company highlights the strategic importance of the Nayara Energy refinery to India's energy industry, emphasizing its role in providing a stable supply of petroleum products to the domestic market. Rosneft warns that the sanctions directly threaten India's energy security and will negatively impact its economy.

The EU's sanctions on Nayara Energy block EU imports of Russian-origin refined products, disrupting a $30 billion-a-year revenue stream for Indian refiners. In response, India is reportedly diversifying its crude sources and accelerating crude-to-chemicals projects to bypass refining volatility and sanctions risks. It is also rebalancing geopolitical forces and shifting export markets to Asia and Africa while leveraging LNG partnerships to navigate EU restrictions.

Rosneft has expressed its hope that Nayara Energy will take steps to protect the legitimate interests of its shareholders and consumers, with the support of the Russian and Indian governments.