Under EU sanctions pressure, Indian shippers reportedly seek to exit contracts with Russian-linked refiner
Two Indian shipping firms have requested to terminate contracts with Nayara Energy, an Indian oil refining company partly owned by Russian oil giant Rosneft, Reuters reported on July 29, citing sources familiar with the matter.
Seven Islands Shipping and Great Eastern Shipping (GESCO) asked Nayara to release three tankers, the Bourbon, Courage, and Jag Pooja, citing exposure to sanctions risks, five sources told Reuters.
Nayara operates India's third-largest refinery and is majority-owned by Russian entities, including Rosneft. The refinery exports refined petroleum products and supplies to India's domestic market.
The company has increasingly come under pressure since the EU adopted its 18th sanctions package on July 18, targeting Russia's energy sector and, for the first time, a Rosneft-linked Indian refinery.
Following the sanctions, Nayara was forced to cut production at its 400,000 barrels-per-day refinery due to fuel storage restrictions. A tanker carrying Russian Urals crude was diverted from the company's Vadinar port, while two others failed to load cargo.
Nayara's CEO, Alessandro Des Dorides, stepped down shortly after the sanctions were announced. The company has also filed a lawsuit against Microsoft after the U.S. software firm suspended services due to compliance issues.
India, long dependent on Middle Eastern oil, sharply increased imports from Russia after Moscow launched its 2022 full-scale invasion of Ukraine, taking advantage of deep discounts and falling European demand.
The latest EU sanctions are part of a broader effort to squeeze Russia's oil revenues and restrict its ability to fund the war in Ukraine. U.S. President Donald Trump has also threatened 100% tariffs on countries that continue importing Russian crude.
New Delhi has resisted Western calls to cut economic ties with Russia, maintaining neutrality on the war.
