Written by: Islam Al-Saqqa
Oil and gas trade between India and Russia is facing increasing challenges in light of European sanctions, as a clear paradox emerges between the pressure exerted on India and the continued massive energy flows from Russia to Europe. Since 2022, European countries have purchased fuel from Russia worth approximately 30 trillion rupees, with imports continuing throughout the current year.
Impact of Sanctions on Nayara Energy Refinery
July 2025 saw the European Union impose sanctions on the Nayara Energy refinery located in the Indian state of Gujarat, due to the share held by the Russian oil company Rosneft in the refinery. In parallel, European purchases from Russia continued, with the value of purchases reaching approximately 2.03 trillion rupees during the first nine months of 2026.
Disparity in Treatment Between India and Europe
While the US administration has imposed additional import tariffs on India's purchases of Russian oil, some European countries enjoy special exemptions; laws allow countries like Hungary and Slovakia to purchase oil from Russia via pipelines. The United States also occasionally grants temporary exceptions for the purchase of Russian fuel in specific cases.
Reasons for Continued European Reliance on Russian Energy
Data indicates that European reliance on Russian energy has not ended despite the sanctions, as pipeline gas purchases increased by 7%, and liquefied natural gas (LNG) purchases increased by 11% in the period from January to May 2026 compared to the previous year. This is due to fears of rising inflation and energy costs, especially after gas prices jumped by 46% and electricity prices by 21% following the outbreak of the Ukraine war.
Long-term Agreements and EU Share
Many European companies are bound by long-term supply agreements for Russian gas, with annual contracts for some companies reaching between 20 and 32 billion cubic meters of LNG. According to data from the Centre for Research on Energy and Clean Air, the European Union accounted for 49% of Russian LNG exports in the period between December 2022 and August 2026, while its share of pipeline-transported gas reached 32%.
