Islamabad – India’s Nayara Energy, a key refiner, is facing a significant supply crisis after two of its major crude oil suppliers, Saudi Aramco and Iraq’s State Organization for the Marketing of Oil (SOMO), ceased shipments in the wake of European Union sanctions. The sanctions, imposed on Nayara due to its majority ownership by Russian oil giant Rosneft, have led to severe payment and logistical challenges, forcing the Indian company to rely solely on Russian crude.
Saudi Arabia and Iraq have stopped supplying oil to India’s Nayara Energy refinery, which is controlled by Rosneft.
The reason is EU sanctions introduced in July.
The plant usually received about 3 million barrels per month from Saudi Arabia and Iraq, but deliveries dropped to… pic.twitter.com/JSHgxZgKV9— NEXTA (@nexta_tv) September 2, 2025
The suspension of supplies from Saudi Arabia and Iraq, which typically provided about 3 million barrels of crude oil to Nayara each month, has left the refinery almost entirely dependent on Russian imports. Reports indicate that Nayara’s refinery, which accounts for approximately 8% of India’s refining capacity, is now operating at a reduced capacity of just 70-80%.
The incident underscores the far-reaching impact of international sanctions and the complex geopolitical landscape of the global energy market. Nayara Energy, caught between its Russian ownership and the need for Middle Eastern crude, is now grappling with disruptions in its supply chain and challenges in selling its refined products. The company has reportedly been forced to rely on “dark fleet” vessels for transportation as other shippers have backed out.
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