Nayara Energy’s Crude Processing Rises to Near Full Capacity Amid Global Sanctions Pressure
Oil: Russian-backed Nayara Energy has increased crude oil processing at its Vadinar refinery to 90–93% of capacity following European sanctions. This had dropped to 70–80% in July. Russia's Rosneft holds a 49.13% stake in Nayara. The company is now running the refinery exclusively on Russian oil and has seen a surge in domestic fuel sales.
Nayara Energy boosts oil production following Russian sanctions, expands refinery capacity in India by 93%
The Russian-backed Indian refiner Nayara Energy has raised its Vadinar refinery's crude oil processing to 90–93% of capacity following sanctions imposed on Moscow. This is in contrast to a reduction in operations by the company after tough EU sanctions were imposed earlier this year. Oil processing at Nayara's 400,000 barrels per day plant in India had fallen to 70–80% after EU sanctions in July.
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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.
