What is Nayara, the Indian firm Russia is reportedly importing oil from? | Energy News
Nayara Energy Reports Sale of Petroleum to Russia Amid Ongoing Fuel Crisis
Nayara Energy, an Indian oil company, has reportedly shipped petroleum products to Russia as Ukrainian forces continue to strike oil refineries in the country, prompting a significant fuel shortage.
Industry sources informed Reuters on Wednesday that approximately 60,000 metric tonnes of gasoline were dispatched from India to Russia, transported by two oil tankers carrying between 30,000 and 40,000 tonnes each.
While Nayara has not publicly confirmed the transaction, Indian Oil Minister Hardeep Singh Puri stated that although Indian firms were not directly selling fuel to Russia, it is plausible that Russian entities acquired Indian-origin fuel through international traders.
Background of Russia’s Energy Crisis
The fuel crisis has emerged as an unprecedented challenge for Russia, one of the world’s largest energy producers. In recent months, Ukrainian forces have targeted Russian oil facilities, resulting in extensive damage and long lines for fuel across the country, including in Moscow.
According to a tally by The Associated Press, there have been over 50 Ukrainian attacks on Russian oil infrastructure since March. Some facilities, such as the refinery in Tuapse, have been targeted multiple times.
On Sunday, Russian President Vladimir Putin addressed the issue, acknowledging that the strikes had triggered fuel shortages in some regions, but characterized them as “not critical” and “temporary.” In contrast, Ukrainian President Volodymyr Zelenskyy highlighted the severity of the situation, noting that Russia, historically an oil-rich state, is now facing significant gas shortages.
Profile of Nayara Energy
Nayara Energy operates India’s second-largest private oil refinery in Vadinar, Gujarat, with a capacity of processing 400,000 barrels of crude oil daily. The company acquired the refinery from Essar in 2015 as part of a complex arrangement endorsed by both Indian Prime Minister Narendra Modi and Russian President Vladimir Putin.
The ownership structure includes a majority stake held by Russian entities. Nayara has faced European Union sanctions since July 2022, which prohibit the import of petroleum products processed from Russian crude and restrict its access to vital shipping and financial services.
Response to Sanctions
The EU sanctions are part of broader measures targeting Russian oil following the country’s invasion of Ukraine. Since the sanctions were enacted, Nayara has predominantly processed Russian oil as other suppliers withdrew. This reliance on international traders has shaped the company’s operational approach in recent months.
Additionally, India’s crude oil imports from Russia surged to record levels in June, as reported by ship-tracking data. This increase has been influenced by a U.S. waiver of sanctions on Russian oil already loaded onto vessels, designed to mitigate fuel shortages linked to the closure of important shipping routes.
In a recent development, a tanker invoice indicated that the Cameroon-flagged vessel Agni, loaded with gasoline from Nayara’s Vadinar refinery, departed for Fujairah on June 20 and is currently navigating through the Suez Canal.