In a blog post released on Friday, the EU’s High Representative for Foreign Affairs and Security Policy, Josep Borrell, clarified that his statement on the circumvention of G7 sanctions on Russia was a criticism of European companies, not the Indian government.
Overview
Borrell said that while countries like India and China were increasing Russian crude imports and processing and selling them to European countries, the bloc must recognise that EU companies are responsible for “circumventing the sanctions” and buying refined oil that originates in Russia.
He added, “If Indian refiners are selling, that is because European companies are buying, directly or through an intermediary.”
In this regard, he urged the bloc to assess the actions of its “economic operators” and find solutions.
We see that EU sanctions on Russia are being circumvented. We need to debate who is responsible and what to do. Often, the answers lies at home. My blog post:https://t.co/2I92RzVyQk pic.twitter.com/o5vsWP39YS
— Josep Borrell Fontelles (@JosepBorrellF) May 19, 2023
This clarification comes in light of Borrell’s statement in an interview with the Financial Times last week, wherein he called for the bloc to reduce oil imports from India, which is refining Russian crude oil and selling it to Europe.
Indian External Affairs Minister S. Jaishankar reacted sharply to Borrell’s claims, saying that a reading of the EU’s regulations, particularly Regulation 833/2014, clearly shows that Russian crude “substantially transformed in a third country” will not be treated as a Russian product.
On India’s Reliance on Russian Oil
The EU Foreign Policy chief noted that India had enhanced its oil imports from 1.7 million barrels per month in January 2022 to 63.3 million in April 2023.
Apart from India, he said that other countries were also increasing their reliance on Russian oil exports. For instance, Kazakhstan has increased its dependence on Russian oil by 268%.
Nevertheless, he said that while the EU would like countries to join the bloc in sanctioning Russia, it cannot make them comply as the sanctions were not “extraterritorial.” He added that while the circumvention of these sanctions must be avoided, it should be handled delicately to “avoid antagonising countries that are not subject to European law.”
"Look at EU council regulations, Russian crude is substantially transformed in 3rd country & not treated as Russian", EAM Jaishankar responds to EU Foreign policy chief Borrell's remarks calling for action against Indian refined products from Russian crude https://t.co/Wb19fOvNqM pic.twitter.com/c24nLoRNna
— Sidhant Sibal (@sidhant) May 16, 2023
The EU chief clarified that despite the “remarkable increase,” the bloc cannot “blame” or “question” India. He reiterated that India cannot be stopped from exporting to the EU.
On the Russia-Ukraine War
Borrell highlighted that the EU does not want to import Russian energy as it wants to curb Moscow’s ability to finance the Ukraine War. In addition, Borrell highlighted that the bloc does not want to “sell technological products and components” that will help Russia’s offensive.
He clarified that these sanctions are binding for the EU’s economic operators.
In this regard, he welcomed discussions on the bloc’s 11th sanctions package, which he said will close the loopholes and address these concerns.
Borrell said, “The proposal under discussion would, among other measures, enable targeted measures against entities that intentionally circumvent EU measures while still upholding the principled opposition of the EU against extraterritorial sanctions.”