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Nayara, the Indian refiner that has been hit by sanctions, is in talks with the government to continue operations

Nayara Energy, a Russian-backed Indian refiner, said it was in contact with government officials and partners on Thursday to ensure the operational stability of its 400,000 bar per day refinery.

Last month, the EU sanctioned the private refiner owned by Russian companies, including Rosneft. This was part of an EU package that targeted entities associated with Russian oil.

In a court filing in Delhi, the private company said that it sold 70% of its refined fuels to Indian consumers through more than 6,600 retail outlets.

Nayara said that it supplies fuels through its coastal, rail and road networks to its retail outlets.

It said, "Our retail petrol stations will continue to operate normally while we work diligently to ensure an uninterrupted fuel supply across India."

Nayara was forced to reduce its Vadinar refinery production on the West Coast by 70-80%, and to halt its exports.

Former chief executives of the company resigned, and shippers pulled out of local movements for its refined fuels.

It said that the company operates its refinery at "a healthy run rate" while supplying fuels. Nayara did not specify at what rate it operates its refinery.

A government source confirmed on Thursday that Nayara had asked the Indian shipping ministry for help in obtaining vessels to transport its refined fuels. (Reporting and editing by Alexandra Hudson. Nidhi verma)

(source: Reuters)