Nayara Energy’s Crude Processing Rises to Near Full Capacity Amid Global Sanctions Pressure

According to Amar Ujala sources, reduced oil processing has impacted Nayara's oil exports. Additionally, major suppliers like Iraq and Saudi Arabia have halted crude oil sales to the company. Before the sanctions, Nayara's refinery was operating at 104% of its capacity. Russian entities hold the largest stake in Nayara, including Rosneft, which holds 49.13%. The US has also imposed sanctions on Rosneft. Nayara's crude oil production has recently increased, leading to increased domestic fuel sales.

Nayara is operating its refinery plant exclusively with Russian oil. The Russian oil was arranged by Rosneft and sold to Nayara through traders. Nayara may continue to purchase Russian oil through unsanctioned entities. However, it is not known how Nayara is paying for its crude oil purchases.

Indian Oil purchased five cargoes of Russian oil arriving in December from non-sanctioned entities. The company resumed purchases despite US pressure on India to stop purchasing Russian oil. The European Union, the UK, and the US have imposed numerous sanctions on Russia for the Ukraine war, including shipping restrictions. These sanctions have forced Russia to sell its oil at a steep discount. Over the past three years, India has become the largest buyer of Russian seaborne crude oil.