Shippers ask to end contracts with Russian-backed refiner Nayara
The owners of three vessels chartered by India’s Nayara Energy have asked to end their contracts with company, six sources familiar with the matter said on Tuesday, under pressure from EU sanctions imposed on the Russian-owned refiner. Nayara, majority-owned by Russian entities including oil major Rosneft, runs India’s third-biggest refinery and exports refined products and also supplies them domestically. Fresh European Union sanctions unveiled on July 18 that target Russia and its energy sector over Moscow’s war in Ukraine, have been increasingly disruptive to Nayara. Reuters earlier reported it has been forced to reduce operations at its 400,000-barrels-per-day refinery due to fuel storage constraints. India-based Seven Islands Shipping Ltd and Great Eastern Shipping Co (GESCO) have asked Nayara to release the three clean products tankers from their contracts, citing concerns over the sanctions, five of the sources told Reuters. Seven Islands is seeking the release of its medium-range vessels Bourbon and Courage, while GESCO has sought the return of the Jag Pooja, the sources said. The sources declined to be named as they were not authorised to speak to the media. Mumbai-based Nayara did not immediately respond to a Reuters request for comment. It has previously criticised the EU sanctions, calling them “unjust and unilateral”. Seven Islands and GESCO did not immediately respond to requests for comment. Bourbon is anchored near Vadinar port in western India, where Nayara’s refinery is based, while Courage and Jag Pooja are floating off Kochi and Ennore ports, respectively, data from analytics firm Kpler showed. Another tanker, Sanmar Songbird, chartered by Indian state refiner Hindustan Petroleum Corp, was scheduled to load gasoline from Nayara on Tuesday, according to three sources and LSEG data. But it has since been diverted to load from Mangalore Refinery and Petrochemicals Ltd, sources said. The diversion was due to the sanctions and the lack of available insurance cover for the voyage, they said. HPCL and Sanmar did not immediately respond to requests for comment.
Trump Tariff: Petroleum Ministry Evaluates Russia Penalty; Awaits Executive Directive
The Ministry of Petroleum and Natural Gas is currently assessing the potential impact of U.S. President Donald Trump’s newly announced 25% tariff on Indian exports. The announcement also states that an additional penalty will be imposed due to India’s crude oil imports from Russia. Senior government officials told NDTV Profit that the ministry is awaiting formal executive directives on specific measures. The US tariff announcement, made late Wednesday, has raised concerns across India’s energy sector, particularly as Russian crude now accounts for nearly 35–40% of India’s total oil imports. India’s energy bill could see a sharp spike if Russian supply is disrupted, a senior official said, adding that refiners may be forced to turn to alternative sources such as the U.S. and Brazil. India has diversified its crude basket in recent years, but the scale of Russian imports, up nearly tenfold since 2021, makes any abrupt shift both costly and complex. Sources to NDTV Profit also raised concerns over tariff-driven disruptions which may push up global prices.
Donald Trump Snubs India, Signs Oil Deal With Pak. What Does This Mean?
After announcing a 25 per cent ‘reciprocal tariff’ on his “friend” India, plus a penalty for buying Russian weapons and oil, Donald Trump said Thursday the US had struck a trade deal with Pakistan, including plans to develop its “massive” oil reserves. A disgruntled Trump also took a shot at India – “maybe they (Pak) will sell oil to India” – over the continued purchase of Russian oil despite sanctions on Moscow for its war on Ukraine. In a Truth Social post last night, Trump appeared to blame India (and China) for funding – by buying Russian crude – a conflict he once boasted he could end within 24 hours of being taking oath. A disgruntled American President also slammed the Indian economy – the fourth largest in the world – as “dead” after failing to persuade Delhi to open its dairy and agriculture markets. Meanwhile, Pak this morning said its deal will “result in a reduction of reciprocal tariffs, especially on exports to the US” but did not give details of what the lower rates would be.