Indian Refined Fuel From Nayara Energy Reaches Russia Amid Shortages
OIL & GAS

Indian Refined Fuel From Nayara Energy Reaches Russia Amid Shortages

Traders have shipped gasoline refined by Nayara Energy to Russia, which is experiencing fuel shortages after Ukrainian attacks on energy infrastructure, Reuters reported citing sources. The development highlighted shifting global fuel trade flows amid geopolitical tensions and noted that seaborne imports of Indian-origin fuel into Russia had been reported earlier without a named supplier. Nayara Energy is partly owned by Russian oil major Rosneft, which holds a 49 per cent stake in the company.

Indian Oil Minister Hardeep Singh Puri said at a media briefing that Indian companies were not directly selling fuel to Russia but acknowledged that Russia might be purchasing Indian-origin fuel through international traders. Since European Union sanctions were imposed in July last year, Nayara had operated under increased constraints and relied heavily on traders for crude imports and fuel exports because of disrupted payment systems. The company's 400,000 barrels-per-day Vadinar refinery in Gujarat was reported to be processing predominantly Russian crude after other suppliers withdrew.

Shipping records and vessel tracking provided further detail, indicating at least 60,000 tonnes (t) of gasoline had been shipped from India to Russia. One source indicated two separate tankers carrying between 30,000 and 40,000 t each were involved in the movements. The tanker Agni, loaded with gasoline from the Vadinar refinery, was recorded departing for Fujairah on 20 June but subsequently transited beyond Fujairah and sailed through the Suez Canal en route north. These movements underscored the complex global routing of energy cargoes involving traders, refineries and sanctioned markets.

Analysts said the flows illustrated how sanctioned markets could be supplied indirectly through global trading routes even as governments maintained official positions distancing themselves from direct bilateral fuel trade. The report underlined the role of intermediaries and vessel reflagging in obscuring cargo origin and destination in contested markets. The developments may prompt closer scrutiny of export documentation and commercial contracts by regulators and market participants.

Traders have shipped gasoline refined by Nayara Energy to Russia, which is experiencing fuel shortages after Ukrainian attacks on energy infrastructure, Reuters reported citing sources. The development highlighted shifting global fuel trade flows amid geopolitical tensions and noted that seaborne imports of Indian-origin fuel into Russia had been reported earlier without a named supplier. Nayara Energy is partly owned by Russian oil major Rosneft, which holds a 49 per cent stake in the company. Indian Oil Minister Hardeep Singh Puri said at a media briefing that Indian companies were not directly selling fuel to Russia but acknowledged that Russia might be purchasing Indian-origin fuel through international traders. Since European Union sanctions were imposed in July last year, Nayara had operated under increased constraints and relied heavily on traders for crude imports and fuel exports because of disrupted payment systems. The company's 400,000 barrels-per-day Vadinar refinery in Gujarat was reported to be processing predominantly Russian crude after other suppliers withdrew. Shipping records and vessel tracking provided further detail, indicating at least 60,000 tonnes (t) of gasoline had been shipped from India to Russia. One source indicated two separate tankers carrying between 30,000 and 40,000 t each were involved in the movements. The tanker Agni, loaded with gasoline from the Vadinar refinery, was recorded departing for Fujairah on 20 June but subsequently transited beyond Fujairah and sailed through the Suez Canal en route north. These movements underscored the complex global routing of energy cargoes involving traders, refineries and sanctioned markets. Analysts said the flows illustrated how sanctioned markets could be supplied indirectly through global trading routes even as governments maintained official positions distancing themselves from direct bilateral fuel trade. The report underlined the role of intermediaries and vessel reflagging in obscuring cargo origin and destination in contested markets. The developments may prompt closer scrutiny of export documentation and commercial contracts by regulators and market participants.

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