Nayara Energy, India’s second-largest private oil refiner, is facing a second consecutive month of difficulty in securing non-Russian crude supplies as western shipping companies continue to refuse transportation of cargoes, according to ship tracking data cited by news agency PTI.Part-owned by Russia’s Rosneft PJSC, which holds a 49.13 per cent stake, Nayara has reduced operations at its 4,00,000 barrels-per-day Vadinar refinery in Gujarat, remaining heavily dependent on Russian barrels since August. Data from global trade analytics firm Kpler showed the company received about 2,42,000 bpd of Russian crude in August and 3,32,000 bpd in the first half of September, possibly transported on vessels arranged by Moscow. By contrast, Nayara received no shipments from key suppliers Iraq and Saudi Arabia during these months, though both had provided 1,20,000 bpd as recently as July.“Nayara’s situation remains challenging under the weight of ongoing sanctions, which have reinforced its reliance on Russian barrels,” said Sumit Ritolia, lead research analyst at Kpler, as per PTI. “Post-sanctions, the refinery has struggled with compliance, shipping, payment channels, and lower crude imports. These issues, however, are gradually being resolved, and we expect operations to move closer to its economical or rated capacity,” he added.The European Union in July blacklisted Nayara, imposed restrictions on Russian-refined fuel imports from January 2026, and cut its oil price cap. The measures also targeted shadow fleet vessels, traders of Russian crude and companies managing such shipments. Following the sanctions, several top executives, including Nayara’s CEO, resigned.The sanctions have also disrupted Nayara’s engineering, procurement and construction operations, with international firms such as France’s Technip Energies and Indonesia’s PT Timas Suplindo pulling out of its projects. The company is now exploring domestic and alternative foreign contractors. Nayara has a Rs 70,000 crore investment programme in petrochemicals, ethanol and infrastructure, including a 1.5 million tonne ethane cracker at Vadinar.Despite US pressure on India to reduce Russian imports, Moscow continues to be New Delhi’s biggest crude supplier, contributing over a third of volumes. Kpler data showed Russian shipments to India at 1.45 million bpd in August and 1.3 million bpd up to September 12, lower than the 1.774 million bpd average earlier in 2025.Ritolia explained that arrivals in August and early September reflected contracts fixed in July, with the impact of tariffs, shipping frictions and payment hurdles likely to appear later. He noted a rise in undisclosed cargoes from Russian ports, many of which had previously been discharged in India. “Overall, regarding September buying, it’s still dynamic, but we’re seeing a continuation of August trends with a focus on diversification,” he said.India’s refiners remain attracted by steep discounts. Russian barrels are still about $3–5 per barrel cheaper than other sources, PTI reported, and without a government directive, refiners are unlikely to forgo even a smaller $1 discount. “For now, it remains business as usual – albeit with greater caution and a sharper focus on diversification as energy security becomes paramount,” Ritolia said.
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