Nayara Energy, a company in India's refining sector, has turned to a 'dark fleet' to continue its oil imports and fuel transportation in the wake of EU sanctions, as stated by Reuters, citing shipping reports and LSEG data.
The company, which holds approximately an 8% share of India's refining capacity of 5.2 million barrels per day (mbbl/d), has faced challenges since the sanctions were imposed last month, leading to a reduction in its crude processing activities.
Nayara Energy operates a 400,000 barrels per day (bpd) refinery in Gujarat, India. It has reportedly imported at least seven cargoes of Russian Urals crude this month, despite the vessels being subject to EU sanctions.
The ships, including Centurion, Mars 6, Pushpa, Horae and Devika, each carried around 700,000 barrels of oil, according to shipping reports and LSEG data.
Before the sanctions, Nayara, with more than 6,600 fuel stations, sold around 70% of its refined products domestically and exported the remainder.
However, the EU sanctions have led to a cutback in operations, with the refinery now running at 70–80% capacity.
Nayara, which is majority-owned by Russian companies such as Rosneft, is looking for assistance from the Indian Government to secure shipping options and sustain stable refinery operations.
Shipping sources indicate that Indian shipping lines are reluctant to transport Nayara's oil and refined products due to the sanctions.
An official from a company that previously shipped Nayara's products mentioned the inability to obtain insurance cover for its vessels under these circumstances.
Nevertheless, Russian entities are reportedly aiding Nayara in arranging ships for its operations.
LSEG trade flows data reveals that Nayara has utilised vessels such as the Next, Tempest Dream, Leruo, Nova, Varg, Sard and Uriel, all under EU sanctions, to transport refined fuels like gasoline and gasoil.
After facing sanctions some of these vessels were renamed.
Despite these logistical hurdles, Evgeniy Griva, Russia's Deputy Trade Representative to India, stated that Nayara is receiving oil supplies from Rosneft without issues.
