EU sanctions hit Nayara Energy's access to non-Russian oil
What's the story
Mumbai-headquartered Nayara Energy, part-owned by Russian oil giant Rosneft with a 49.13% stake, is facing challenges in sourcing non-Russian crude. The problem has persisted for the second consecutive month as western shipping companies have refused to transport oil for the company. This comes after the European Union blacklisted Nayara in July due to its involvement with Russian oil and the sanctions on shadow fleet vessels.
Dependency
Heavy dependence on Russian oil
Nayara Energy has been heavily dependent on Russian crude oil since August. The company's Vadinar refinery in Gujarat, which has a capacity of 400,000 barrels per day (bpd), has already reduced its run rate due to this dependence. In August alone, Nayara received around 242,000 barells per day (bpd) of Russian oil—possibly via ships arranged by Moscow—and another 332,000 bpd in the first half of September.
Supply issues
Nayara's situation worsens as it faces challenges in sourcing crude
Despite its heavy reliance on Russian crude, Nayara has not received any oil from other major suppliers such as Iraq and Saudi Arabia in August and September. This is a stark contrast to July when these countries supplied about 120,000 bpd of crude to Nayara. The company's situation remains challenging under the weight of ongoing sanctions, which have reinforced its reliance on Russian barrels.
Sanctions effect
EU sanctions impact Nayara's ability to source oil
In July, the EU imposed a ban on imports of petroleum products made from Russian crude. It also tightened its oil price cap and sanctioned companies involved in managing shadow fleet vessels and trading Russian crude oil. The sanctions have resulted in non-Russia-backed shipping fleets refusing to transport oil for Nayara Energy while Western insurance companies have denied cover for these shipments.
Import strategy
Despite challenges, Russian crude continues to flow into India
Despite the challenges, Russian crude oil continued to flow into India in September. According to global trade analytics firm Kpler, Russia continues to be India's top crude supplier, accounting for more than a third of total imports. "Nayara's situation remains challenging under the weight of ongoing sanctions, which have reinforced its reliance on Russian barrels," said Sumit Ritolia, Lead Research Analyst (Refining & Modeling) at Kpler. "Post-sanctions, the refinery has struggled with compliance, shipping, payment channels, and lower crude imports."
Import patterns
A look at India's oil imports from Russia
India's oil imports from Russia stood at around 1.45 million bpd in August and 1.3 million bpd till September 12, Kpler data showed. This is lower than the 1.774 million bpd average for the first seven months of 2025. However, these figures could change as several vessels now headed to Port Said may change their final destinations while transiting through Suez Canal.