A Refiner Under Pressure
Nayara Energy, one of India’s largest private oil refiners, has long been a vital player in global energy flows. Operating a 400,000-barrel-per-day refinery at Vadinar in Gujarat, the company traditionally exported gasoline, gasoil, and jet fuel to markets spanning Asia, Europe, and the Middle East. But its Russian backing has put it under the scanner. On 18 July, the European Union sanctioned Nayara for allegedly facilitating Russian oil trade, forcing the company to abruptly pause exports for nearly two weeks and rethink its trading routes.
Exports Shrink, Refinery Runs Cut
The sanctions immediately disrupted operations. Shipping data from LSEG and Kpler shows that Nayara’s clean product exports — including gasoline, diesel, and aviation fuel — dropped sharply to about 80,000 barrels per day in August and September, down from nearly 138,000 barrels per day during the January–July period.
Adding to the pressure, Nayara was forced to scale down refinery runs to 70–80% of capacity, as chartering ships and clearing fuel from Vadinar became increasingly difficult. For a company of this scale, such a reduction underscored how severely sanctions had shaken its business model.
Shifting Routes and New Buyers
Before the embargo, most of Nayara’s refined cargoes went to trading firms supplying Asia and northwest Europe. That path has now closed. Since early August, the company has redirected flows to newer destinations: the Middle East, Turkey, Taiwan, and Brazil.
Data shows 16 cargoes of diesel, gasoline, and jet fuel left Vadinar after exports resumed. Some of these tankers — sanctioned by the EU themselves — were seen floating off Oman and the UAE, either awaiting buyers or conducting ship-to-ship transfers. A few cargoes offloaded at Egypt’s ports, while two shipments reached Turkey’s Turkis Enerji Storage Tank Farm. Others charted longer journeys, with tankers Blue Ember and Anaya heading to Brazilian ports Santos and Paranagua.
In Asia, a tanker named Opal delivered high-sulphur gasoil from Vadinar to Taiwan’s Taichung port, despite Taipei’s sweeping restrictions on Russia that stop short of banning Russian energy imports outright.
Buyers and Market Response
Industry sources say Redwood Global Supply has emerged as a major buyer of Nayara’s gasoline consignments bound for the Middle East. Traders add that the redirection of cargoes reflects not just necessity but also a willingness among emerging-market buyers to pick up discounted fuel despite reputational risks.
Authorities in Oman, the UAE, Brazil, and Egypt declined to comment on the shipments, while Taiwan’s Ministry of Economic Affairs also avoided specifics.
Ministry’s Silence and Global Concerns
Neither Nayara nor Indian authorities have officially responded to the latest reports of sanctioned tankers carrying its products. The Ministry of Petroleum and Natural Gas has maintained that India’s private refiners make commercial decisions independently, reiterating New Delhi’s broader stance that energy trade must remain insulated from geopolitical disputes.
However, Western officials suspect that the blending of routes, use of ship-to-ship transfers, and reliance on sanctioned vessels suggest a “shadow network” approach, making enforcement of sanctions increasingly complex.
A Balancing Act for Nayara and India
Nayara’s maneuvers highlight the adaptability of energy trade in the face of sanctions. While its volumes have dipped, the company has managed to carve out new pathways to sustain overseas sales. For India, this episode reflects the delicate balance between supporting private industry, securing energy markets, and navigating global scrutiny tied to Russia.
For now, Nayara remains in business — not at full strength, but still finding customers across continents. Whether this workaround becomes a sustainable strategy or invites deeper international pressure will shape not only Nayara’s future but also India’s role in an increasingly divided energy landscape.
(With agency inputs)
