Oil Traders Tear Up Contracts With Rosneft's Indian Refinery
- 22.07.2025, 12:19
The reason is European sanctions.
Counterparties begin to wind down cooperation with the Indian company Nayara Energy, in which Rosneft holds almost 49% of shares. The reason is European sanctions imposed on this oil refinery. This could slow Russian oil supplies to the refinery and limit exports of its products, especially if shipments are not made by vessels from Russia's shadow fleet, Bloomberg reported.
As Bloomberg reported citing ship brokers, shipowners have begun to avoid deals with Nayara - both for exports of its oil products and feedstock supplies. In particular, the tanker Talara, which was on its way to pick up a shipment of diesel, canceled its load immediately after the announcement of EU sanctions against "Rosneft's largest refinery in India." The vessel turned around and raided off the coast, according to the tracking data.
Nayara owns a refinery and port terminal in Vadinar. The EU has banned the import of fuel made from Russian crude, which will make it difficult for Nayara to operate, especially since much of the global fleet is controlled by European companies from Greece, Norway, Malta and Cyprus.
After the EU oil embargo was imposed in 2022-2023, India has been actively buying Russian crude at discounted prices and reselling refined products - such as diesel and jet fuel - at market rates. In 2023, Russia accounted for 38% of India's oil imports, while India in turn supplied 16% of diesel and kerosene to Europe.
The market now fears that sanctions risks could spread not only to carriers but also to traders and banks. Indian refiners have already sent requests to the EU for clarification on the new restrictions, including the blacklisting of Nayara.
The EU has clarified that the sanctions come into effect from January 21, 2026, meaning companies have six months to adapt. Nevertheless, Nayara has already started changing the terms of contracts, demanding prepayment or instant payment letters of credit. This practice is atypical: usually settlements take place 15-30 days after loading. This raises doubts among traders about whether they are ready to participate in the company's future tenders.