Nayara Energy is reportedly holding discussion with the government to address fuel supply challenges triggered by recent EU sanctions on Russia.
The EU introduced its 18th sanctions package against Russia last month to end the war in Ukraine.
Nayara Energy is holding talks with the Narendra Modi-led government and partners to ensure operational stability of its 400,000 barrels per-day refinery and fuel supplies, Reuters reported. The move comes around a time when the Russia-backed Indian refiner is facing supply chain-related issues due to the sanctions imposed by the European Union against Russia last month.
“Our retail fuel stations continue to operate as usual while we diligently work to ensure uninterrupted fuel supplies across India,” the company said, according to Reuters.
The sanctions have already compelled Nayara to reduce output at its Vadinar refinery on the West Coast to 70%-80% and severely impacted its exports.
Besides the EU’s sanction, Nayara Energy will also be impacted severely if the President Donald Trump-led US administration further imposes tariffs on India. Recently, in an interview with Bloomberg TV, US Treasury Secretary Scott Bessent hinted secondary tariffs could be imposed on India.
EU’s Sanctions Against Russia’s Energy Sector
The EU imposed the 18th sanction package against Russia to end the Ukraine war. The sanctions have targeted Russia’s energy revenues, banking sector, and military-industrial complex. With this package, the number of listed vessels in Russia’s shadow fleet reaches a total of 444 vessels, and the number of individual listings exceeds 2,500. The union has also lowered the oil price cap for crude oil from $60 to $47.6 per barrel, which is effective from September 3. Additionally, the EU has placed an import ban on refined oil products derived from Russian crude oil. The asset freezes and travel ban throughout the shadow fleet value chain have targeted both Russian and international companies involved in shadow fleet vessels and traders of Russian crude oil.
“Full-fledged listings- asset freezes, travel bans – throughout the shadow fleet value chain,” said the union in a statement. “These target both Russian and international companies managing shadow fleet vessels, traders of Russian crude oil, as well as a major customer of the shadow fleet, a refinery in India with Rosneft as its main shareholder,” the union added.
