EU sanctions hit India’s Nayara Energy, overhaul postponed

India’s Nayara Energy Ltd. has postponed planned maintenance at its 400,000 barrels‑per‑day Vadinar oil refinery, which was originally scheduled for early 2026.

The decision to delay the shutdown and maintenance — now expected from February to April 2026 — stems from European contractors refusing to work with the company due to its ties with Rosneft PJSC and its sanctions imposed by the European Union over Russia’s war in Ukraine, Bloomberg reports.

According to people familiar with the matter, Nayara has yet to secure alternative providers for the specialized work.

The refinery last underwent extensive maintenance in November 2022. Indian refineries typically schedule major overhauls every four years to coordinate fuel supply and minimize disruptions — and while short delays are usually manageable, prolonged postponements carry safety and operational risks.

Before sanctions, the Vadinar complex relied on European technology and equipment from suppliers such as Siemens AG (Germany) and Topsoe A/S (Denmark). The sanctions have also stalled Nayara’s planned petrochemical project, as other contractors including France’s Technip Energies and Japan’s Toyo Engineering Corp. withdrew from the project.

In July, the EU sanctioned Nayara for allegedly funding Russia’s war in Ukraine. Rosneft — which holds nearly half of Nayara’s ownership — has described the sanctions as “unjustified and illegal.”

Despite the geopolitical pressure, the Vadinar refinery continues to process Russian Urals crude, following supply disruptions from Saudi Arabia and Iraq and banks halting financing for overseas payments to sellers.

By Vafa Guliyeva