The European Union has recently tightened sanctions on the imports of crude oil and fuels from Russia. This may impede two major Indian oil companies - Reliance Industries Limited and Nayara Energy both of which are the countrys leading fuel exporters which have Europe as an important export market. Mukesh Ambani the chairman of Reliance could sustain a financial loss due to this situation. In the 18th sanctions package the European Union has lowered the price cap on Russian oil from $60 to 47.6 per barrel which will be effective on September 3. Furthermore the EU will also target any ship involved in transporting Russian oil and sanctions have been applied to Nayara Energy. Nayara Energy which is 49% owned by Russian oil firm Rosneft will be prohibited from selling petroleum products in Europe. Nayara could also face barriers to banking and access to the technical support offered in Europe. Reliance Industries has a significant contract with Rosneft which includes their purchases of discounted Russian crude oil. The company now has a tough choice. If Reliance keeps taking Russian oil then it may lose out on the high-margin European diesel market. If it stops though there is a chance it could have a tough job securing affordable-priced crude oil from some other part of the globe. Reliances refining margins are going to be under some duress either way. India has responded to recent sanctions announced by the European Union stating that it does not subscribe to any unilateral sanction measures and emphasizing the importance of avoiding double standards especially in the domain of energy trade. In response to media queries on the issue Ministry of External Affairs spokesperson Randhir Jaiswal said We have noted the latest sanctions announced by the European Union. India does not subscribe to any unilateral sanction measures. We are a responsible actor and remain fully committed to our legal obligations Jaiswal said. The spokesperson further underlined that the Government of India considers the provision of energy security a critical responsibility. Government of India considers the provision of energy security a responsibility of paramount importance to meet the basic needs of its citizens. We would stress that there should be no double standards especially when it comes to energy trade he added. The Ministry of External Affairs further cautioned against double standards on the matter.Addressing a press conference in the national capital MEA spokesperson Randhir Jaiswal said We have seen reports on the subject and are closely following the developments. Let me reiterate and I have said this in the past as well that securing the energy needs of our people is understandably an overriding priority for us. In this endeavour we are guided by what is available in the markets as well as by the prevailing global circumstances. The NATO Secretary General had in his recent remarks asked India China and Brazil to reconsider their purchase of oil from Russia or face the prospect of 100 per cent secondary sanctions.Rutte echoed the position taken by US President Donald Trump who earlier this week threatened severe tariffs on countries maintaining trade with Russia. My encouragement to these three countries particularly is that if you live now in Beijing or in Delhi or you are the President of Brazil you might want to take a look at this because this might hit you very hard Rutte had said. The NATO chief had also urged India and the other countries to make the phone call to Vladimir Putin and tell him that he has to get serious about peace talks with Ukraine. because otherwise this will slam back on Brazil on India and on China in a massive way. However it will be difficult for the EU to implement the price cap given that oil is traded in US dollars - an area in which the United States has considerable authority over transactions in US dollars. In addition the United States has not been supportive of the EUs movement. Additionally most Indian refiners do not do business directly with European buyers. They tend to find an intermediary which complicates the enforcement of sanctions further.