531
Views

Reports: EU Sanctions Hit Russian-Owned Refiner Nayara's Tanker Charters

Nayara
Nayara's loading dock at Vadinar (Nayara / CC BY)

Published Aug 7, 2025 10:43 PM by The Maritime Executive

 

The Russian-owned Indian refiner Nayara is having shipping difficulties after the new EU sanctions on its operations, and not just internationally. It is dependent upon seagoing transport for domestic deliveries as well, and domestic shipowners no longer want to carry its cargoes on coastwise routes, according to PTI, Bloomberg and Times of India. 

"The firm typically requires three ships to maintain its fuel supply chain. But since the EU sanctions came into effect, it has managed to get only one [tanker]," a source familiar with the matter told PTI. 

Reuters has named two firms, Seven Islands Shipping and Great Eastern Shipping, as the owners of three vessels that call at Nayara on domestic routes. The companies have reportedly asked for the release of their vessels from charter parties because of sanctions risks. 

Part of the issue lies with marine insurance, Times of India reports. EU sanctions on Nayara mean that tankers serving the refinery cannot obtain insurance cover from EU insurers, nor from other Western firms that honor EU sanctions. The overwhelming majority of the marine insurance business happens in the UK and EU, so exclusion from these markets makes it difficult to obtain legitimate cover. 

To solve this problem, Nayara is seeking help from the Indian government to create a domestic marine insurance scheme for its tankers, supported by Indian insurance agencies, reports TOI. 

The impact of the sanctions has been significant. Nayara has reportedly reduced its run rate by a reported 20-30 percent because its refined-product storage is filling up. The senior members of its management team who have European ties have departed, including three board members, one senior VP, and the CEO, Alessandro Des Dorides.

Nayara is majority Russian-owned; Rosneft holds 49 percent of the firm, and Russia-based United Capital Partners (UCP) is a partner in the JV that owns another 49 percent. The refiner is among the largest Indian buyers of Russian crude oil, the source of underlying friction in trade talks between the U.S. and India. President Donald Trump has ordered an additional 25 percent tariff on all Indian goods starting August 27 if New Delhi does not cease buying Russian crude.