Reuters: Leading traders, banks cut ties with Indian refinery over ties to Russia
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World oil traders and banks have stopped cooperation with the Indian oil refinery Nayara Energy, as they fear Western sanctions, informs Reuters, citing sources. Among those who refused to cooperate are manufacturers from Canada, Latin America and Europe.
Nayara Energy includes oil refineries (refineries) in Vadinar with a capacity of 20 million tons of oil, a port and a retail business (about 4.8 thousand gas stations). In 2017, Trafigura’s participation in the acquisition of Nayara Energy allowed “Rosneft” to become the largest shareholder of this company with a share of 49.13%. It is the second largest private refinery in India. The company accounts for 8% of India’s oil refining capacity.
According to a Reuters source, most traders, including the Swiss-Dutch Vitol and Glencore, have refused to directly sell Nayara oil. Among the companies that refused to work with Nayara are Phillips 66, Occidental Petroleum Corp, Shell and others. Some financial conglomerates also refused to cooperate, for example, the American Morgan Stanley and the French BNP Paribas.
After the start of the military operation in Ukraine, Western countries imposed sanctions on Russia. The restrictions also apply to Rosneft, which owns almost half of Nayara’s shares. Some Nayara executives, including the chief financial officer, left the company after Western countries began imposing sanctions on Russia. The official reason for their dismissal was not called.
Nayara is one of the key buyers of Russian oil. Increasing supplies of raw materials from Russia, as well as improving the quality of products, contributed to the increase in Nayara’s quarterly profit to a record 35.6 billion Indian rupees ($446 million) in April-June.
Recently, India has begun to actively export oil from Russia. Since April this year, purchases of Russian oil have grown 50 times to 10% of total imports. At the same time, Nayara Energy buys 40% of all oil.
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