Nayara Energy Faces Challenges Amid EU Sanctions and Reliance on Russian Crude
Nayara Energy, part-owned by Rosneft PJSC and blacklisted by the European Union, is struggling to secure non-Russian crude supplies, leading to a heavy reliance on Russian oil. EU sanctions have resulted in operational challenges, but gradual resolutions are expected as India balances Russian discounts with traditional sources.
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Nayara Energy, partly owned by Russian oil giant Rosneft and recently blacklisted by the European Union, faces increasing difficulty securing non-Russian crude supplies. Western shipping companies refuse to transport oil for Nayara, forcing reliance on Russian barrels, as revealed by ship tracking data.
The company has cut production at its Vadinar refinery in Gujarat, obtaining 2,42,000 barrels per day of Russian oil in August and 3,32,000 bpd in early September, according to Kpler. With no supplies from other major sources like Iraq and Saudi Arabia in recent months, Nayara faces operational challenges amid EU sanctions.
According to Sumit Ritolia of Kpler, the sanctions have complicated Nayara's operations, affecting compliance, shipping, and payment channels. Nonetheless, efforts are underway to restore capacity, while India continues to diversify between Russian discounts and traditional suppliers to ensure energy security and mitigate geopolitical risks.
(With inputs from agencies.)
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