Ships carrying Nayara Energy’s Russian oil insured in Russia
Nayara Energy
| Photo Credit:
Dinakaran
Nayara Energy Ltd, which is majorly dependent on Russian crude oil to fire the Vadinar refinery in Gujarat, has said that it is operating in full compliance with Indian laws, including those that govern fleet used for sourcing crude oil to its refinery and for carrying finished products. Moreover, the ships are all insured in Russia.
Recently Nayara, co-owned by PJSC NK Rosneft — Russian state-owned oil company, and Kesani Enterprises Company Limited — an investment consortium formed by Mareterra Group (through its subsidiary Hara Capital Sarl) and the Russian investment group UCP, has come under international scrutiny.
According to sources closely associated with the developments, though currently the main supply is coming from Russia for the refinery, Nayara continues to source crude supply on a regular basis from other geographies and traders too. “The refinery is operating at a healthy run rate with steady crude throughput. This also ensures that Nayara is able to maintain continuity of production supplies across its 6,700 plus fuel stations and oil marketing company commitments,” a source told businessline.
The Vadinar refinery’s complexity of 12.17 allows it to refine crude from various geographies efficiently. The source also pointed out that Nayara is getting its crude supplies through a fleet that is regulated by Indian laws and hence cannot be labelled as a ‘shadow fleet’.
Moreover, the ships that are carrying finished products from the refinery within Indian waters are approved by DG Shipping, the source said adding that “so these ships are not dark or shadow fleet.”
Elaborating further the source said, “Ships that are transporting crude for Nayara are all insured in Russia. Only those ships that can’t carry crude to India, that have insurance in EU or EU affiliated nations have insurance concerns, if any.”
As regards the ongoing global developments impacting Nayara’s engineering, procurement and construction operations, the source said that the contractors are not restricted to one or two geographies, and even local Indian contractors can be considered so that business is not impacted.
Nayara contributes approximately 8 per cent to India’s total refining capacity, 7 per cent of India’s retail petrol pump network and estimated 8 per cent of polypropylene capacity. Since August 2017 over ₹14,000 crore in various projects within India, including upgrading existing refining facilities have been invested.
It is investing in a new Petrochemical plant and other new infrastructure projects. It has said that it will continue to invest over ₹70,000 crore in the long term towards petrochemicals, ethanol plants, marketing infrastructure expansion and refinery reliability, including ESG projects
Published on August 24, 2025
