Shippers ask to end contracts with Russian-backed refiner Nayara, sources say

The owners of three ships chartered by India's Nayara Energy have asked to terminate their contracts with the company due to pressure from EU sanctions imposed on the Russian-owned oil refiner. This was reported on Tuesday by six sources familiar with the situation.

Nayara, which is majority-owned by Russian entities, including oil giant Rosneft, owns India's third-largest oil refinery, exports petroleum products, and supplies them to the domestic market.

The new package of European Union sanctions announced on July 18 against Russia and its energy sector over the war in Ukraine is creating increasing obstacles for Nayara. The company was forced to cut production at its 400,000-barrel-per-day refinery due to fuel storage restrictions.

Indian companies Seven Islands Shipping Ltd and Great Eastern Shipping Co have asked Nayara to release three tankers of clean oil products from contracts, citing risks related to sanctions, five sources said.

Source: Reuters