With no exports, sanctions-hit Nayara ups fuel supply to HPCL

Nayara Energy has increased supply of refined petroleum products to state-run Hindustan Petroleum Corporation Limited (HPCL) as Russia’s Rosneft-backed refinery’s exports tanked to zero following sanctions by the European Union (EU), a top government official said.

- SHUBHANGI MATHUR

“Nayara would supply (petroleum) products to domestic companies, mainly to HPCL, and some other small players such as Shell,” the official said on the sidelines of an event in New Delhi.

Nayara Energy, which is 49 per cent owned by Russian oil major Rosneft, was directly sanctioned by the EU under the group’s 18th sanctions package announced on July 18. The sanctions completely eroded the refinery’s petroleum exports to Europe.

Nayara’s increased supply of refined products to HPCL would aid the company in offsetting the impact of sanctions. The company could access trucks and pipelines to supply products from its Vadinar refinery in Gujarat to HPCL’s ter-

minals, the official said.