Sanctions-hit Nayara Energy uses dark fleet to import oil, transport fuels

Indian refiner Nayara Energy, backed by Russia and under European Union sanctions, is relying on a dark fleet to import oil and transport refined fuels, according to shipping reports and LSEG flows.

Nayara, which controls about 8 per cent of India's 5.2 million barrel-per-day refining capacity, has been struggling to transport fuel since being placed under EU sanctions in July, a move that prompted shippers to back out, forcing the refiner to cut its crude runs.

India, the world's third-largest oil importer and consumer, abides by UN sanctions and not unilateral actions, allowing refiners to import oil and ship products in vessels also under EU sanctions.

This month, Nayara has imported at least seven cargoes of Russian oil, including on sanctions-hit vessels Centurion, Mars 6, Pushpa, Horae and Devika, formerly known as Apar, according to shipping reports and LSEG data. All were carrying about 700,000 barrels of Russian flagship Urals crude, the data shows.

Nayara did not respond to an email seeking comment.

Prior to the sanctions, Nayara was selling about 70 per cent of the refined fuels produced at its 400,000 bpd day Vadinar refinery in western Gujarat state through its local network of more than 6,600 fuel stations, and exporting the rest.

Nayara, majority owned by Russian entities including Rosneft, is seeking government help to secure ships and maintain stable operations at the refinery, where it has cut runs to 70-80 per cent of capacity.

A shipping source said Indian lines that undertake overseas voyages are not willing to carry oil and refined products for Nayara, while an official at a company that regularly shipped Nayara's refined products said they could not get insurance cover for their vessels in such cases.

Another shipping source said Russian entities were helping Nayara arrange ships.

According to LSEG trade flows, the company has used the Next, Tempest Dream, Leruo, Nova, Varg, Sard and Uriel - all under EU sanctions - to ship refined fuels, mainly gasoline and gasoil. Some of the vessels were renamed after being placed under sanctions.

Evgeniy Griva, Russia's deputy trade representative to India, on Wednesday said Nayara is getting oil supplies from Russian oil major Rosneft and is not facing problems.