EU Cracks Down on Russian Oil, Will Mukesh Ambani’s Billion-Dollar Fuel Game Come Crashing Down?

New Delhi (The Uttam Hindu): he European Union has announced a fresh wave of sanctions on Russian crude oil and fuel products, slashing the price cap from 60 dollars per barrel to 47.6 dollars, which will take effect from September 3. This move threatens to disrupt the export strategies of India’s leading fuel suppliers, Reliance Industries and Nayara Energy, both of which have relied heavily on Europe as a key market. Nayara Energy, with Russian oil major Rosneft holding a 49% stake, will face additional restrictions, including a ban on selling fuel in Europe and tighter access to European banking services and technical support.

The EU decision puts Reliance Industries, owned by Mukesh Ambani, in a critical dilemma. Continuing to purchase discounted Russian oil could block access to Europe’s highly profitable diesel market, while cutting Russian imports would mean losing the cost advantage of cheaper crude, directly impacting refining margins.

India has strongly opposed the unilateral European decision, with the Ministry of External Affairs emphasizing that energy security is vital for meeting citizens’ essential needs and should not fall victim to geopolitical moves. Officials argued that trade in energy must remain fair and free of double standards.

However, the EU faces its own challenges in enforcing these sanctions, as the majority of oil transactions are conducted in US dollars, a domain where America holds greater leverage. Moreover, Indian refiners typically supply European markets through intermediaries rather than direct deals, making it harder to implement a strict blockade.

This high-stakes standoff could reshape the global oil trade, leaving Mukesh Ambani and India’s biggest refiners caught between geopolitical crossfire and economic realities.