Media: Copenhagen talks may bring new EU sanctions on Indian, Chinese ports, refineries

At an upcoming informal meeting in Copenhagen, European Union Foreign Ministers are set to discuss the potential imposition of sanctions on refineries, ports, and related entities in India and China due to their cooperation with Russia.

The discussions will focus on a substantial expansion of the EU’s sanctions list, targeting entities deemed as “enablers” within Russia’s so-called “shadow fleet” ecosystem, Caliber.Az reports, citing foreign media.

This shadow fleet is alleged to facilitate Moscow’s evasion of existing international sanctions by covertly transporting oil and petroleum products. In addition to state-owned and commercial facilities, private operators offering ship registration services may also face restrictive measures.

EU officials have also recently become more open to moving against entities based in China and India, in part due to growing pressure from Washington.

Previous EU sanctions packages already blacklisted an Indian oil refinery and two Chinese banks, but ministers are expected to discuss significantly extending that list, which would mark a sharp turn for a bloc wary of extraterritorial measures.

As of late July, the EU had sanctioned 535 unique oil tankers, according to data by the Kyiv School of Economics.

India – recently courted as a key trade partner amid its tariff stand-off with the US – has come under fire for profiting from cheap Russian crude, with its refineries accused of turning Russian oil into diesel and gasoline for the global market, thereby bolstering Moscow's war machine.

Some EU member states, including Denmark, would like the discussion to go beyond existing measures and consider activating the EU’s so-called anti-circumvention tool.

The consideration of secondary sanctions by the EU comes amid growing pressure from the United States, which is engaged in a complex geopolitical standoff with India. On August 6, Washington escalated trade tensions by raising tariffs on Indian goods by up to 50%, in direct response to India’s ongoing purchases of Russian oil and petroleum products.

US officials also accused India of profiting from discounted Russian oil, while Indian authorities argue that the West practices double standards, as the EU and US continue purchasing billions of dollars’ worth of Russian goods. The Indian oil ministry did not immediately respond to requests for comment.

Traders report that Indian refiners are likely to increase Russian oil purchases in September by 10–20 per cent from August levels, equating to roughly 150,000–300,000 barrels per day. Three trading sources, citing preliminary purchase data, spoke on condition of anonymity. The two largest buyers of Russian crude in India, Reliance and Nayara Energy (majority Russian-owned), did not provide comment.

The full impact of US tariffs and Western sanctions may only become apparent with cargoes arriving in India in October. Meanwhile, the EU has tightened its price cap to $47.60 per barrel from September 2, 15 per cent below the Russian crude market price, restricting access to Western services for cargoes sold above this threshold and complicating Russian oil sales later this year.

By Vafa Guliyeva