U.K. sanctions Gujarat’s Nayara Refinery
U.K. Imposes Sanctions on Gujarat’s Nayara Refinery
Context
The British government has imposed sanctions on Nayara Energy Ltd.’s Vadinar Refinery in Gujarat’s Jamnagar district. The move is part of a wider package targeting Russia’s oil sector.
Background
- Nayara Energy is 49.13% owned by Russia’s Lukeoil and Rosneft, both under Western sanctions.
- The E.U. had already sanctioned the refinery in July 2025.
- Sanctions coincide with a period of strong U.K.–India diplomatic and trade engagement, including a Free Trade Agreement (FTA) signed on July 24, 2025.
Nature of Sanctions
The U.K. sanctions include:
- Asset freeze
- Director disqualification
- Transport and trust service restrictions
- Sanctions extended to 44 Russian tankers and four Chinese oil terminals.
As of October 2025, the U.K. has frozen £28.7 billion worth of Russian assets since Russia’s invasion of Ukraine in 2022.
Statements
- Rachel Reeves, U.K. Chancellor (currently in Washington DC), said:
“We are sending a clear signal — Russian oil is off the market.”
- Reeves also noted the U.K. is “ramping up pressure on companies in third countries, including India and China.”
Data Highlights
- India’s state-run refineries cut Russian crude imports by over 45% (June–Sept 2025).
- Nayara, however, increased imports, reaching record levels in October 2025.
- In 2024, Nayara imported 100 million barrels of Russian crude worth over $5 billion.
Updated - October 16, 2025 02:56 am | The Hindu