Nayara Energy in Talks with Government to Maintain Operational Stability Amidst Sanctions

Russia-backed Indian refiner Nayara Energy said on Thursday it was talking to government authorities and partners to maintain operational stability of its 400,000 barrels per day refinery and fuel supplies despite EU sanctions hurting the supply chain.

The private refiner, majority-owned by Russian companies including Rosneft, was sanctioned by the EU last month as part of a package targeting entities linked to Russian oil.

The private company sells about 70% of its refined fuels in India through more than 6,600 retail outlets, it said in a Delhi court filing.

Nayara is supplying fuels to its retail stations through coastal, rail, and road networks, it said.

"Our retail fuel stations continue to operate as usual while we diligently work to ensure uninterrupted fuel supplies across India," it said.

The sanctions forced Nayara to cut output at its Vadinar refinery on the West Coast to 70%-80% and hit its exports.

Its former chief executives resigned and shippers backed out from local movement of its refined fuels.

The company is operating the refinery at a "healthy run rate" and is supplying fuels, it said. Nayara has not specified at what rate its refinery is operating.

Nayara has sought help from India's shipping ministry to get vessels for the movement of its refined fuels, a government source said on Thursday.

(Reuters)