Nayara Energy, part-owned by Russian oil giant Rosneft PJSC and blacklisted by the European Union in July, is facing mounting difficulties in securing non-Russian crude for a second consecutive month. According to ship tracking data, western shipping companies have refused to transport oil for the company, creating operational challenges for its 400,000 barrels-per-day refinery at Vadinar in Gujarat.
Since August, Nayara has heavily relied on Russian oil, receiving approximately 242,000 barrels per day (bpd) in August and another 332,000 bpd in the first half of September, according to preliminary data from global trade analytics firm Kpler. Notably, Nayara did not receive crude from traditional suppliers such as Iraq and Saudi Arabia during this period, despite these nations supplying about 120,000 bpd in July.
“The ongoing sanctions have compounded Nayara’s operational difficulties, affecting compliance, shipping, payment channels, and crude imports,” said Sumit Ritolia, Lead Research Analyst (Refining & Modeling) at Kpler. He added that these challenges are gradually being addressed, and the refinery is expected to move closer to its rated capacity.
The EU’s sanctions, implemented in July, banned petroleum products made from Russian crude starting January 2026 and imposed a price cap on Russian oil. These measures targeted Russian and international companies managing the so-called “shadow fleet” of tankers and also blacklisted Nayara, where Rosneft holds a 49.13% stake. As a result, non-Russian shipping fleets have refused to transport oil, and Western insurers declined coverage for Russian barrels. Several top Nayara executives, including the CEO, resigned following the sanctions.
Despite mounting pressure from the US to reduce purchases of Russian oil, shipments of Russian crude to India continued in September. Russia remains India’s largest crude supplier, accounting for over one-third of total imports. Kpler notes that August and early September shipments reflect contracts made in July, and the full impact of sanctions and shipping disruptions is likely to be seen from late September onward.
Meanwhile, India continues to balance its oil imports, maintaining supplies from West Asia, including Iraq, Saudi Arabia, and the UAE, to mitigate geopolitical risks. Russian crude shipments to India tracked around 1.45 million bpd in August and 1.3 million bpd in September (as of September 12), slightly lower than the average of 1.774 million bpd over the first seven months of 2025.
Kpler also observed an uptick in undisclosed cargoes departing Russian ports, many of which were destined for India, suggesting continued strong flows. Indian refiners, attracted by steep discounts on Russian barrels—USD 3–5 cheaper per barrel than other sources—are unlikely to abruptly pivot away from Russian supply, experts say.
“Greater diversification is expected, as refiners balance affordability with energy security. For now, it remains business as usual, with heightened caution,” Ritolia concluded.