Russia-backed Nayara approaches India’s Shipping Ministry to help ship fuel as EU sanctions hit ops

FILE PHOTO: A worker stands at a fuel station of Nayara Energy on the outskirts of Ahmedabad, India, November 16, 2022. REUTERS/Amit Dave/File Photo
| Photo Credit:
AMIIT DAVE

Russia-backed Nayara Energy is seeking assistance from India, after facing sanctions from the European Union (EU), that have reportedly been disrupting its operations here in the sub-continent.

The refiner, struggling to secure shipping services due to EU sanctions have approached the Directorate General of Shipping (DGS) for Indian-flagged VLCCs (very large crude carriers) to transport its refined fuel across the country. A representation has been made “recently” and the matter is under consideration, senior officials aware of the matter told businessline.

“A representation by Nayara Energy was made to DGS,” a Ministry of Ports, Shipping and Waterways official said.

Nayara Energy operates one of India’s largest private oil refineries.

Facing sanctions, shipping companies are terminating contracts; and insurance for voyages is becoming harder to secure for the Russia-backed refiner.

Nayara Energy did not comment till press time.

Rosneft, Russia’s state-backed energy giant, owns 49.13 per cent of Nayara. Another 49.13 per cent stake is held by Kesani Enterprises, a consortium led by Italy’s Mareterra Group and Russia’s United Capital Partners.

Following the European Union’s 18th sanctions package, Nayara Energy is facing challenges is securing transportation for supply of crude oil.

Last month, Nayara Energy, which owns and operates India’s second-largest single-site refinery with a capacity of 20 MTPA, dragged the US-headquartered software and data services giant Microsoft to the Delhi High Court. It was availing paid services from Microsoft, which were abruptly and unilaterally discontinued in an alleged “breach of contract”. The court disposed off Nayara’s petition after Microsoft resumed services.

The private sector oil marketing company (OMC) has reiterated that it is here to stay in India.

“As a trusted partner in India’s energy journey, we remain focused on ensuring uninterrupted energy supply, advancing the country’s refining and retail capabilities, creating employment opportunities, and supporting India’s path toward energy self-sufficiency and economic growth,” the company said on July 27.

Nayara Energy had previously emphasised that despite sanctions imposed by the EU, the company will continue to invest over Rs 70,000 crore in the long term towards petrochemicals, ethanol plants, marketing infrastructure expansion and refinery reliability including ESG projects.

Since 2017, Nayara Energy has invested more than Rs 14,000 crore in India. It contributes around 8 per cent of the country’s total refining capacity.

Around 7 per cent of India’s retail petrol pump network is led by Nayara, while it accounts for an estimated 8 per cent of the country’s polypropylene capacity. It also offers direct and in-direct employment to over 55,000 people across India.

(Inputs by Rishi Ranjan Kala)

Published on August 7, 2025

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