Media: India’s Nayara Energy cuts refinery output following EU sanctions

Nayara Energy, an Indian refiner backed by Russia, has scaled back operations at its key refinery in Gujarat after new European Union sanctions disrupted its export activity, according to industry sources.

The company, which runs the 400,000-barrel-per-day refinery at Vadinar — India’s third largest — is reportedly operating below full capacity, with two sources placing utilisation between 70% and 80%, Caliber.Az reports per foreign media.

This marks a sharp drop from the first half of the year, when the plant was operating above 100% capacity, based on official data.

The EU’s latest sanctions package, introduced on July 18, targeted entities linked to Russia’s energy sector, including Nayara. The restrictions have made it harder for the Mumbai-based refiner to sell its products abroad, leading to storage bottlenecks. Traders have also become more hesitant to engage with the firm, sources say.

It was reported that two tankers cancelled scheduled loadings at the Vadinar port, while another vessel carrying Russian crude was redirected away from Nayara.

The refiner, which exports around four million barrels of fuel products monthly — including diesel, jet fuel, petrol and naphtha — is a significant player in India’s fuel market, accounting for nearly 8% of the country’s total refining capacity.

Nayara is majority-owned by Russian investors, including energy giant Rosneft, and remains a major importer of Russian crude oil.

The company has not commented publicly on the latest developments. However, its chief executive recently resigned in the wake of the sanctions and was succeeded by Sergey Denisov, formerly Nayara’s chief development officer.

Separately, Nayara has launched legal action against Microsoft after the US tech firm suspended services to the company.

Nayara operates over 6,000 retail fuel stations across India.

By Aghakazim Guliyev