Nayara Energy Delays Vadinar Refinery Maintenance Amid EU Sanctions

Economic Times
Economic Times
2h ago
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Nayara delays Vadinar refinery maintenance to April 2026 due to lack of European contractors amid EU sanctions.
Nayara Energy Delays Vadinar Refinery Maintenance Amid EU Sanctions
A What happened
India’s Nayara Energy has postponed scheduled maintenance of its 400,000 barrels-per-day Vadinar refinery from February to April 2026 due to European contractors' reluctance to work with the company. Nayara, partly owned by Russia’s Rosneft, faces EU sanctions imposed in July for allegedly funding Russia’s war in Ukraine. These sanctions have also stalled petrochemical projects at the Vadinar site after major suppliers withdrew. Meanwhile, the refinery continues processing Russian Urals crude after disruptions from Saudi and Iraqi suppliers, highlighting growing challenges in global crude sourcing and operational dependencies influenced by geopolitical tensions.

Key insights

  • 1

    Sanctions affecting Indian-Russian energy cooperation: EU sanctions on Nayara, linked to Russian ownership, are disrupting refinery maintenance schedules and petrochemical project development, intensifying operational risks and dependencies.

  • 2

    Shift in global crude supply chains: With Saudi and Iraqi oil deliveries disrupted, Nayara's reliance on Russian crude reflects how geopolitical tensions are reshaping global energy supply routes.

Takeaways

Nayara’s postponed maintenance reflects the operational and strategic challenges faced by energy firms entangled in geopolitics and sanctions, with implications for India's energy security and broader international supply chains.

Topics

World & Politics Policy & Regulation International Affairs Climate & Environment Energy Trade & Tariffs

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