Nayara Energy seeks shipping ministry’s help to move fuel
Nayara Energy, the Russia-linked private refiner that was sanctioned by the European Union in July, is now reaching out to India’s shipping ministry for help. The company is reportedly struggling to secure vessels for transporting refined fuel to its retail stations across the country.
According to a government source, Nayara officials met with central ministries this week to discuss the situation. The ministries of shipping, petroleum and external affairs are expected to convene soon to explore possible solutions — including the use of India-flagged vessels operated by local firms.
EU sanctions tighten the screws
The EU sanctions have put Nayara in a tight spot. Since the announcement, several foreign shipping partners have either withdrawn from existing contracts or refused fresh bookings. Even Microsoft briefly suspended key digital services to the company, adding to operational pressures.
Nayara has already reduced its crude refining throughput at the Vadinar facility in Gujarat, which processes 20 million tonnes of oil per year. Unlike public sector refiners, Vadinar is not linked to a pipeline network and depends entirely on marine transport to move its products to nearby ports. From there, the fuel is taken to distribution points by road.
Insurance hurdles complicate things
A major sticking point appears to be insurance. Ship owners are reportedly hesitant to operate vessels for Nayara without clear protection, given the EU sanctions. That makes even short-distance voyages a financial and legal risk.
India is now looking into whether it can sidestep these obstacles by deploying domestically registered ships, at least for internal distribution.
Government options on the table
While no final call has been made, officials are weighing the possibility of supporting Nayara’s logistics without directly breaching international frameworks. It’s a delicate balancing act, keeping domestic fuel supply steady while navigating geopolitical sensitivities.
