India’s second-largest private oil refiner, Nayara Energy, is facing a second consecutive month of difficulty in securing non-Russian crude supplies as Western shipping companies continue to refuse cargo transportation, according to ship-tracking data.
Nayara, which operates the 4,00,000 barrels-per-day Vadinar refinery in Gujarat, has remained heavily dependent on Russian barrels since August. Data from global trade analytics firm Kpler showed the company received about 2,42,000 bpd of Russian crude in August and 3,32,000 bpd in the first half of September—largely shipped on vessels arranged by Moscow.
By contrast, Nayara received no cargoes from key suppliers Iraq and Saudi Arabia during this period, though both had supplied around 1,20,000 bpd as recently as July.
“Nayara’s situation remains challenging under the weight of ongoing sanctions, which have reinforced its reliance on Russian barrels,” said Sumit Ritolia, lead research analyst at Kpler. “Post-sanctions, the refinery has struggled with compliance, shipping, payment channels, and lower crude imports. These issues, however, are gradually being resolved, and we expect operations to move closer to its economical or rated capacity,” he added.
The European Union in July blacklisted Nayara, tightened restrictions on Russian-refined fuel imports effective January 2026, and cut its oil price cap. Measures also targeted shadow fleet vessels and traders of Russian crude. The sanctions prompted several top executives, including Nayara’s CEO, to resign.
The pressure has disrupted engineering and procurement activities, with France’s Technip Energies and Indonesia’s PT Timas Suplindo exiting ongoing projects. Nayara, which has a ₹70,000 crore investment programme spanning petrochemicals, ethanol, and infrastructure, is now exploring domestic and alternative foreign contractors. This includes plans for a 1.5 million tonne ethane cracker at Vadinar.
Despite U.S. pressure on India to scale down Russian imports, Moscow remains New Delhi’s biggest crude supplier, accounting for over a third of volumes. Kpler data showed Russian shipments to India at 1.45 million bpd in August and 1.3 million bpd up to September 12, down from an average of 1.77 million bpd earlier in 2025.
Analysts noted that arrivals in August and early September reflected contracts fixed in July, with the true impact of tariffs, shipping frictions, and payment hurdles likely to be felt later this year. A rise in undisclosed cargoes from Russian ports has also been observed, many of which previously discharged in India.
“Russian barrels are still about $3–5 per barrel cheaper than other sources, and without a government directive, refiners are unlikely to forgo even a smaller $1 discount,” Ritolia said. “For now, it remains business as usual—albeit with greater caution and a sharper focus on diversification as energy security becomes paramount.”
