According to a report by Reuters, Saudi Aramco and Iraq’s SOMO have stopped supplying crude to Nayara Energy’s refinery in Gujarat after the European Union sanctioned the Indian company in July, citing its 49% ownership by Russia’s Rosneft. People familiar with the matter said Aramco halted sales over payment complications tied to the sanctions, while Nayara received no Iraqi cargoes in August.
Kpler data show the refinery’s last non-Russian deliveries were Arab Light on July 18 and Basrah Heavy on July 29, leaving the plant reliant on Russian Urals. In August, Nayara imported an average of 242,000 barrels per day—the lowest since November 2022—against nameplate capacity of 400,000 b/d, as it cut runs and increasingly tapped “dark-fleet” tankers to keep barrels moving. All August imports were Urals; by comparison, roughly 29% of Nayara’s 2024 intake had come from the Middle East.
The EU measures aim to further restrict Kremlin oil revenues, much of which now flows via discounted sales to Asia. Nayara has asked New Delhi for help securing compliant banking channels and shipping for both crude and products. The Modi government, however, is facing intensifying U.S. pressure to curb purchases of Russian oil, including a new 50% tariff on Indian goods headed to the American market.
Despite the squeeze, Nayara’s August buying helped lift India’s total Russian crude intake by 88,000 b/d to 1.69 million b/d. A Nayara spokesperson did not respond to requests for comment. Saudi Aramco and SOMO did not immediately comment.
By Charles Kennedy for Oilprice.com
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