Roseneft-backed Nayara Energy remains highly exposed if the India-US deal translates into stricter enforcement of tariffs or penalties for buying Russian oil as the refinery has limited diversification options available amid existing EU sanctions.
The company which has ramped up its crude processing to nearly 90-100 percent of capacity as of October 2025 against only 70-80 percent of capacity utilisation after the EU sanctioned the 20-million tonne refinery denting its exports to European Union countries in July last year, once again finds itself in a distinct position. Analysts note that the refinery was running at 104 percent of capacity before the EU sanctions.
“The refinery is already subject to EU and UK sanctions, which significantly restrict its access to non-sanctioned and ‘clean’ crude barrels, as well as related shipping, insurance, and financing services. As a result, Russian crude remains the most viable, and in many cases the only consistently accessible feedstock, that allows the refinery to operate at economic run rates,” said Sumit Ritolia, lead research analyst, refining and modeling at Kpler.
As part of its measures against Moscow, the EU has imposed sanctions on Nayara’s Vadinar refinery, owned by Rosneft-backed Nayara Energy and tightened the oil price cap. Post these sanctions, Nayara cannot export fuel such as petrol and diesel to European countries. Last year, the US also sanctioned major Russian oil producers Rosneft and Lukoil.
Given these constraints, Nayara is likely to continue processing Russian barrels as a complete halt would materially impair refinery operations unless sanctions relief or alternative commercial channels emerge, Ritolia said.
The sanctions have impacted Nayara’s exports while leading Middle East suppliers including Saudi Arabia and Iraq have stopped their crude sale to the company.