Nayara Energy Faces EU Sanctions: Coastal Fuel Transport Gains Approval, But Overseas Trade Stalled

Nayara Energy has received clearance from Indian authorities to use four foreign-flagged ships for coastal transportation of fuels like petrol and diesel within the country. However, the company's international trade remains at a standstill, hindered by a lack of viable banking channels. Rosneft, holding a significant stake, condemns the sanctions.

Despite gaining regulatory approval for domestic operations, Nayara Energy's exports are thwarted by EU sanctions. The company's Vadinar refinery, responsible for 8 percent of Indian fuel consumption, is primarily reliant on Russian crude due to restrictions against using Middle Eastern suppliers, such as those in Iraq and Saudi Arabia.

As attempts to revive overseas trade continue, Nayara faces logistical hurdles and management challenges highlighted by EU sanctions. The UCO Bank, selected to facilitate dollar transactions, struggles without support from its UAE counterpart. EU sanctions have also led to significant resignations within Nayara's executive team.

(With inputs from agencies.)