Rosneft-backed Nayara Energy has doubled down on its long-term commitment to India’s downstream energy expansion, reaffirming plans to invest ₹70,000 crore (approximately $8 billion) in refining, petrochemicals, ethanol plants, and retail infrastructure, even as it finds itself ensnared in the European Union’s latest sanctions package targeting Russian-linked oil interests.
In a strongly worded statement, Nayara slammed the EU’s inclusion of its Vadinar refinery—India’s second-largest single-site refinery – as “unjustified and illegal,” arguing that the sanctions violate principles of international law, infringe upon Indian sovereignty, and jeopardise the uninterrupted supply of petroleum products essential to Indian industry and citizens. The company confirmed it is “actively exploring all legal and appropriate avenues” to challenge the measures.
Operational signals point to mounting consequences from the sanctions. A second tanker, scheduled to lift diesel from the Vadinar port in late July, has re-routed to Kuwait, while another BP-chartered vessel left Nayara’s port without loading, concrete signs that compliance concerns and elevated risk perceptions are deterring shipping partners.
With the sanctions encapsulated in the EU’s 18th package also introducing a sharp crude price cap on Russian oil and banning fuel exports derived from Russian feedstock via third countries, Indian refiners face growing pressure on export flows to Europe. As a result, many are expected to shift reliance toward traders, alternative markets, or cargo-swapping mechanisms to manage logistical disruptions and maintain production volumes.
Nayara’s public response comes at a pivotal juncture, it contributes approximately 8% of India’s refining capacity and oversees more than 6,700 retail fuel outlets, underpinning its central role in the national energy landscape. By reasserting its investment roadmap, the company is signaling its resolve to back Indian energy self-reliance while resisting external pressure.
