EU sanctions disrupt fuel supply from Nayara Energy’s Vadinar refinery

Gir Somnath: Fuel transportation from Nayara Energy’s Vadinar refinery in Gujarat has been hit after shipowners halted operations over European Union sanctions linked to the company’s Russian ties.

Nayara, backed by Russian oil giant Rosneft, has relied heavily on coastal shipping to move petrol and diesel to high-demand regions along the western and southern coastlines—including Maharashtra, Mangalore, Chennai, Andhra Pradesh, and Odisha. Unlike other refineries, Vadinar is not connected to India’s fuel pipeline network, making maritime transport essential for its supply chain.

However, this supply model has been disrupted after shipping firms pulled back, citing difficulties in securing insurance coverage. Most mutual insurers for marine transport are based in Europe and are now unwilling to underwrite voyages linked to Nayara.

Facing growing logistical challenges, top executives from Nayara Energy met with officials from the Ministry of Shipping on Thursday to request assistance. The company is exploring the possibility of partnering with Indian shipping lines under an arrangement where domestic insurers would provide voyage coverage.

In the meantime, Nayara has already reduced output at its 20-million-tonne-per-annum refinery to align with the limited capacity for product distribution. DeshGujarat