New Delhi: the refinery of Nayara Energy in Vadinar in Gujarat became the first in India to come under Western sanctions, because the European Union announced new curbs on Friday about the export of the Russian oil with the aim of mosquitation of the war machine of Moscow.“For the first time we are designating a flag registration and the largest Rosneft refinery in India,” Agencies quoted EU chef from foreign policy Kaja Kallas.India replied by saying that it “does not subscribe to one -sided sanction measures.” We are a responsible actor and remain fully committed to our legal obligations. Government of India regards the delivery of energy security as a responsibility of the utmost importance to meet the basic needs of its citizens. We would emphasize that there should not be double standards, especially when it comes to energy trade, ”said spokesman Randhir Jaiswal of the Ministry of Foreign Affairs in response to media questions.The new measures include reducing the current price limit of $ 60/VAT, the threshold where countries outside the G7 grouping of seven developed economies of Russian oil and access to Western shipping and insurance services can buy. In addition, 105 off-radar ships are punished, which brings the total to 223 from a fleet of 400 oil tankers and Moscow’s ability to avoid the price cap.Rosneft, together with partners – raw material trader Trafigura and Russian investment firm UCP (United Capital Partners – had taken over the refinery with a capacity of 20 million tonnes per year from Esar Oil for $ 12.9 billion in 2017. Rosneft owns 49.1% in the company. An investment consortium SPV, Kesani Enterprises Company has a 49.13 percent interest in Nayara. Kesani is owned by the Russian United Capital Partners (UCP) and Hara Capial Sarl, a complete subsidiary of Mareterra Group Holding (formerly Genera Group Holding Spa).The sanction can have a paralyzing effect on the refinery and the attempt by Rosneft to leave the company derailing due to sanctions that have made repatriation impossible. The refinery depends on exports to Europe and Africa as a small retail network of 6,750 fuel stations limit domestic sale. CURBS on products derived from Russian oil could cloud export, influence activities and threatening jobs.The sidewalk edges will also derail the bid of Rosneft to leave the company because sanctions have made repatriation of the profit impossible. As previously reported by Toi, the Russian giant conversations had started Reliance Industries LTD for the sale of his (removal of 49.1%) interest in Nayara, but the asking price of $ 20 billion turned out to be an obstacle.The new price limit will be assessed in a band to the market average, since subdued prices have made the current limit less effective. At the current oil prices, the new limit is expected to be in the $ 47 region that reflects a shaving agent of around 21% from the current limit, according to the media reports. The move is aimed at pressing the oil income from Moscow, the stronghold of the Russian economy, without giving a supply shock for the market.The lower cap will deepen the discounts and make Russian oil more attractive for other Indian refineries – the largest buyers, next to China. However, managers of refining companies said that more clarity is needed, especially in the export of products, before they came to sight.
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