Sanctioned Indian refiner turns to shadow fleet for Russian oil supplies

Nayara Energy, an Indian oil refiner partly owned by Russia’s Rosneft, has begun using vessels under international sanctions to continue importing Russian crude, according to a Reuters report based on data from LSEG.

Industry sources told Reuters that Russian entities are helping facilitate the shipments, allowing Nayara to maintain its crude supply despite tightening restrictions. The data indicates that Nayara has received at least seven cargoes of Russian oil aboard sanctioned tankers, amounting to roughly 700,000 barrels in total.

Nayara Energy is a significant player in India’s oil sector, operating the country’s second-largest refinery in Vadinar, Gujarat, with a capacity of 400,000 barrels per day. The company accounts for about 8% of India’s total refining output, and Rosneft holds a 49% stake in the operation.

India, which does not recognize unilateral sanctions imposed outside the United Nations framework, has continued to import Russian oil despite repeated rounds of Western restrictions. The European Union has so far passed 18 sanction packages against Russia, with a 19th under consideration. In its latest move, the EU extended penalties to include companies and customers involved in Russia’s shadow tanker fleet — among them, Nayara Energy.

Recent reports suggest that Nayara has sharply reduced its crude intake, down from a daily average of 366,000 barrels a year ago to around 94,000 barrels in recent months.

Meanwhile, the Russian embassy in New Delhi announced earlier this week that Moscow had developed a new mechanism to ensure continued oil exports to India. This comes amid reports that former U.S. President Donald Trump, if re-elected, may impose a 25% tariff on Indian imports unless New Delhi halts purchases of Russian crude.