India's Nayara Reduces Refinery Output 20% After EU Sanctions

Nayara Energy, India's third-largest refinery with a capacity of 400,000 barrels per day, has reduced its operations to about 70%-80% following new European Union sanctions targeting Russian-linked entities. The sanctions have created significant challenges for Nayara in exporting refined products, leading to storage constraints and logistical difficulties as traders and shipowners become cautious. Several tankers have skipped planned loadings or rerouted shipments, further disrupting the refinery's normal export activities. The refinery had been operating at or above full capacity prior to the sanctions, underscoring the impact of the EU measures on its output. Nayara, majority-owned by Russian entities including Rosneft, is a key buyer of Russian crude and has recently changed its CEO amid these pressures, while also pursuing legal action against Microsoft after service suspensions. These developments illustrate the strain sanctions have placed on Nayara's operations and its role in the global oil supply chain.