Sanctions Strain: Nayara Energy's Operations Under Pressure
India's Nayara Energy, a Russian-backed refiner, reduced operations due to EU sanctions, affecting its ability to export refined products. Operational capacity fell between 70% and 80%, with traders wary of dealing with its fuel. A leadership change occurred, and legal action was taken against Microsoft.
India's third-largest refiner, Nayara Energy, has been forced to curtail its output following the European Union's new sanctions targeting entities linked to Russia. The privately-owned company, which commands nearly 8% of India's total refining capacity, operates a 400,000-barrels-per-day plant in Gujarat.
The EU sanctions, imposed on July 18, have made the export of Nayara's refined products more challenging, leading to storage constraints as traders exercise caution. Reports reveal that a significant reduction in operations to 70-80% capacity occurred when tankers skipped planned loadings and rerouted Russian crude shipments.
Nayara, under new leadership after its CEO's recent resignation, pursued legal action against Microsoft for service suspension. Strategically importing Russian crude post-Ukraine invasion, Nayara represents a critical link in the global oil supply chain.
(With inputs from agencies.)
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