Indian refiner linked to reported petrol shipments to Russia
Reuters sources said Nayara Energy-made petrol was sent to Russia as Ukrainian strikes strain fuel supplies.
By Sofia Marchetti · World Affairs Correspondent
4 min read
Petrol made by India’s Nayara Energy was sent to Russia through traders, Reuters reported, citing industry sources, as Moscow faces fuel shortages after repeated Ukrainian attacks on energy sites. The reported shipments matter because Nayara is an Indian refiner with major Russian ownership and is already under European Union sanctions tied to Russian oil.
Industry sources told Reuters on Wednesday that at least 60,000 metric tonnes of petrol had been shipped from India to Russia. Reuters also reported that two tankers carrying 30,000 to 40,000 tonnes each had been dispatched.
Two separate sources told Reuters on Thursday that Nayara produced the gasoline and that traders handled the sale to Russia. Nayara has not confirmed the reported shipments, according to Al Jazeera.
India’s Oil Minister Hardeep Singh Puri said Thursday that Indian companies were not selling fuel directly to Russia, according to Al Jazeera. He said it was “possible” Russia had bought fuel of Indian origin through international traders.
Ukraine strikes have hit Russia’s fuel supply
Ukrainian forces have targeted Russian oil sites in recent months, causing fires and fuel lines in parts of the country, including Moscow, according to Al Jazeera. The Associated Press counted more than 50 reported Ukrainian attacks since March on Russian refineries, depots, terminals and other energy infrastructure.
AP said some facilities were hit more than once, including the refinery in Tuapse, a Black Sea town that was struck four times. Attacks also have been reported in Crimea, which Russia annexed illegally in 2014, according to Al Jazeera.
Russian President Vladimir Putin acknowledged Sunday during a meeting with ministers and officials that Ukrainian strikes on refineries had caused fuel shortages in some regions, according to Al Jazeera. Putin described the shortages as “not critical” and “temporary.”
Ukrainian President Volodymyr Zelenskyy said Monday on Telegram that Russians could see the war had reached a point where an oil-producing state was facing gasoline shortages, according to Al Jazeera.
Nayara’s refinery and ownership
Nayara Energy operates India’s second-largest private refinery at Vadinar in Gujarat, with capacity to process 400,000 barrels of crude a day, according to Al Jazeera. The company also runs a private fuel station network in India.
The Vadinar refinery was bought from Essar in 2015, when the Indian company was under financial strain, Al Jazeera reported. The deal was part of an arrangement involving Indian and Russian interests that was approved by Prime Minister Narendra Modi and Putin, according to Al Jazeera.
At the time, Putin was seeking to reduce Russian state holdings in Rosneft, Russia’s large public-sector oil company, Al Jazeera reported. Indian public-sector oil companies bought a stake in Rosneft, and Rosneft bought 49 percent of what became Nayara.
Another 49 percent of Nayara is owned by United Capital Partners, a Russian asset management company, according to Al Jazeera. Al Jazeera reported that the ownership structure leaves Nayara controlled by Russian entities.
Sanctions and trade routes
The European Union sanctioned Nayara in July last year as part of measures aimed at Russian oil, according to Al Jazeera. The measures banned imports of petroleum products processed with Russian crude and restricted the refinery’s access to EU shipping insurance, financial services and other services.
Al Jazeera reported that the EU’s 18th sanctions package against Moscow after the 2022 invasion of Ukraine also barred petroleum products made from Russian crude from entering the bloc. That affected Indian exporters after Europe became an important market during the war.
Nayara’s Vadinar refinery has processed only Russian oil since other suppliers pulled back after the sanctions, according to Al Jazeera. Since then, the company has relied on international traders to bring in crude and ship out refined fuels.
Reuters, citing ship-tracking data from LSEG and Kpler, reported that India’s crude imports from Russia reached a record high in June. Reuters also reported that an invoice showed the Cameroon-flagged tanker Agni loaded petrol at Vadinar and sailed for Fujairah on June 20, while LSEG data later placed it in the Suez Canal heading north.
This story draws on original reporting from Al Jazeera.