Russia Turns to Nayara Energy for Gasoline Amid Fuel Shortages

Russia's Fuel Crisis and Nayara Energy's Role

In response to fuel shortages caused by ongoing Ukrainian attacks on its energy facilities, Russia has reportedly started importing gasoline refined by Nayara Energy through various international trading firms. A recent report from a news agency indicates that Russia has begun maritime imports of gasoline from India. Although the initial report did not specify the refiner, sources familiar with the situation have confirmed that Nayara Energy is the supplier. However, Nayara has yet to officially verify these claims.

Union Petroleum Minister Hardeep Singh Puri addressed inquiries on Thursday, clarifying that Indian refiners are not directly selling fuel to Russia. Nonetheless, he acknowledged the possibility that fuel produced in India could reach Russian clients via intermediaries. His comments come amid heightened scrutiny regarding fuel transactions involving Russian-affiliated companies and global commodity traders.

Since the European Union imposed sanctions on Nayara Energy last July, the company has adapted its business model. These restrictions complicated dealings with customers and suppliers, leading the refiner to rely more on trading firms for both crude oil procurement and the export of refined products. Nayara operates a refinery in Vadinar, Gujarat, with a capacity of 400,000 barrels per day. Following the sanctions, the facility shifted to processing exclusively Russian crude oil after other suppliers ceased providing feedstock.

Rosneft, the state-owned oil giant of Russia, holds a 49% stake in Nayara Energy.

Tanker Data Indicates Shipments to Russia

According to the news agency, at least 60,000 metric tons of gasoline have already been dispatched from India to Russia. Sources indicate that these shipments included two cargoes, each containing approximately 30,000 to 40,000 metric tons. Shipping documents reviewed by the agency revealed that the tanker 'Agni' loaded gasoline at Nayara's Vadinar refinery on June 20, with Fujairah marked as the intended destination. However, tracking data showed that the Cameroon-flagged tanker did not stop at Fujairah but instead continued past the port, transited the Suez Canal, and headed north, indicating that the cargo was likely bound for Russia.