Sanctions Disrupt Nayara Energy's Fuel Transport Operations
Nayara Energy, backed by Rosneft, faces disruption in its fuel transport operations due to EU sanctions. The company depends on ships to move products from its refinery in Gujarat, but shipowners have halted operations fearing EU sanctions. Nayara is negotiating with Indian shipping lines for an alternative solution.
- Country:
- India
Nayara Energy, majority-owned by Rosneft, is grappling with a major supply chain disruption due to European Union sanctions. The sanctions, aimed at penalizing the company's Russian connections, have led shipowners to halt transporting Nayara's products, impacting fuel distribution from its Vadinar refinery.
Executives from Nayara convened with India's Shipping Ministry to secure vessels after Indian shipping lines pulled out, citing difficulty obtaining necessary insurance. European-based Protection and Indemnity clubs, and entities must adhere to the sanctions, thereby complicating Nayara's logistics further.
The company plans to engage Indian insurers for voyage coverage. Despite reducing the refinery's run rate, the sanctions led to notable resignations among its European senior management. As Nayara explores legal avenues against the sanctions, a political intervention might be needed to resolve the ongoing stalemate.
(With inputs from agencies.)
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