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#Economy #International Affairs #Energy
Economic Times
Economic Times
3d ago 11 views

Russia-backed sanctioned Indian refiner Nayara Energy boosts crude runs to 90%, sources say

Nayara Energy has ramped up its refinery operations to 90-93% capacity after EU sanctions reduced processing levels. This matters as it highlights the resilience of Russian oil supply chains despite international restrictions.
Russia-backed sanctioned Indian refiner Nayara Energy boosts crude runs to 90%, sources say
A What happened
Nayara Energy, a major Indian refiner with significant Russian ownership, has successfully ramped up its crude processing at the Vadinar refinery to between 90% and 93% capacity. This increase follows a period of reduced operations, where processing levels fell to 70-80% due to European Union sanctions imposed earlier this year. The sanctions had a substantial impact on Nayara's ability to source crude, leading to a halt in supplies from countries like Iraq and Saudi Arabia. Currently, Nayara is exclusively processing Russian oil, which is being supplied through traders with arrangements facilitated by Rosneft, a major Russian oil company. The refinery's ability to rebound and boost domestic fuel sales, including supplies to state-owned Hindustan Petroleum Corp, underscores its strategic maneuvering in the face of international sanctions. Nayara's operations reflect a broader trend among Indian refiners navigating the complexities of sourcing Russian oil amidst geopolitical tensions.

Key insights

  • 1

    Increased Capacity

    Nayara Energy's refinery operations have surged to 90-93% capacity.

  • 2

    Reliance on Russian Oil

    The refinery is now exclusively processing Russian crude oil.

  • 3

    Impact of Sanctions

    EU sanctions previously reduced Nayara's processing levels significantly.

Takeaways

Nayara Energy's ability to increase its crude processing capacity amidst sanctions illustrates the complexities of global oil supply chains and the ongoing reliance on Russian oil by Indian refiners.