NEW DELHI: The mounting weight of US and European Union sanctions has begun to badly hit the Indian economy, with the country’s vital energy sector now reeling under Western pressure.
What started as Washington’s punitive action against Russian-linked businesses has now been reinforced by Brussels, dealing a severe blow to India’s oil imports and economic stability.
Nayara Energy, a key Indian private refiner with Russian investment ties, has been thrust into the firing line. Following the EU’s latest sanctions, Saudi Aramco and Iraq’s SOMO — longstanding crude suppliers to Nayara — have completely halted sales. Industry sources confirmed that not a single shipment arrived in August, a shocking disruption for a refiner that had for years relied on steady supplies from the Middle East.
The figures expose the depth of the crisis. Nayara, which typically imported 2 million barrels of Iraqi crude and 1 million barrels of Saudi crude every month, was cut off entirely last month. For energy-hungry India, already grappling with soaring demand from industry and consumers, the disruption threatens looming refinery slowdowns, spiraling fuel prices, and cascading impacts across the economy.
Analysts warn that India is being cornered due to its duplicity in global politics — cozying up to Russia while attempting to maintain Western ties. “The sanctions are deliberately constraining one of the world’s so-called fastest-growing economies,” one analyst observed, adding that the West views New Delhi’s policies as harming their strategic and economic interests.
Observers caution that if the escalation continues, India’s energy security and growth ambitions risk being throttled at the very moment it aspires to project itself as a global power.
