The aftereffects of the secondary sanctions on Russian oil movement are being felt at Deendayal Port in Kandla, among others.
The first half of this fiscal year witnessed a 6 per cent decline in the handling of crude products and LPG/ LNG versus the same period last year, according to the Indian Ports Association data. One of the major reasons attributed to this is the decline in the handling of Russian oil by the port.
During April to September 2025, Deendayal Port handled 30.07 lakh tonnes of crude products and LPG/ LNG against 32.5 lakh tonnes in the same period last year. The port handles most of the Russian oil among all 13 major ports in India. Though there is no direct sanction on Russian oil purchase, there is an impact on its movement due to restrictions imposed by Washington and the European Union on countries that buy crude oil from Moscow.
When asked if crude imports were down due to geopolitical tensions, Sushil Kumar Singh, Chairman, Deendayal Port Authority (DPA), told businessline: “In September, we saw a four per cent decline in the amount of crude that is imported through our port. This is about 1.2 million tonnes.”
DEALS IMPACTED
Crude imported through the port is transported through pipelines to five oil refineries, including Nayara, coowned by PJSC NK Rosneft (Russian Stateowned oil company) and Kesani Enterprises Company Ltd, an investment consortium formed by the Mareterra Group (through its subsidiary Hara Capital Sarl) and Russian investment group UCP, and a couple of refineries belonging to the Indian Oil Corporation.
Besides, Nayara had signed a deal to import crude oil from Russia’s Rosneft for 10 years.
A larger impact seems to be on the export of petroleum, oil and lubricants (POL). To partly tide over the crisis, the port authority, along with the DG Shipping and Nayara, are trying to use the coastal cargo route to domestically consume a portion of the POL products that were meant to be exported, said Singh.
“Till now, the refinery is operating at a healthy run rate with steady crude throughput. This also ensures that Nayara can maintain continuity of production supplies across its 6,700 plus fuel stations and oil marketing company commitments,” said those associated with the refinery.
MOUNTING PRESSURE
However, with mounting American pressure on India to cut down its dependence on Russian oil, Nayara is toying with the idea of using crude from various geographies efficiently.
Moreover, the overall crude imports were low because of maintenance works at Indian Oil’s Vadinar refinery, said Sumit Ritolia, Lead Research Analyst, Refining & Modeling, Kpler.
India is likely to continue importing 1.61.8 mb/d of Russian crude, with symbolic reductions possible if Washington intensifies pressure.
