Russia is importing gasoline from Indian oil firm Nayara Energy as Moscow faces a fuel crunch following Ukrainian attacks on its refineries. It is the first time Russia has imported motor fuel from India, Bloomberg reported, citing Kpler data.
Reuters, citing sources, had earlier reported that at least 60,000 metric tonnes of petrol had been dispatched from India to Russia, with two oil tankers carrying between 30,000 and 40,000 tonnes each.
The first shipment was received on August 5, Bloomberg reported.
Two sources told Reuters on Thursday that the gasoline was manufactured by Nayara Energy and subsequently sold to Russia through international traders.
Nayara Energy has not confirmed the claim. However, Minister of Petroleum and Natural Gas, Hardeep Singh Puri, said on Thursday that Indian companies were not directly supplying fuel to Russia, but added that it was “possible” for Russia to have bought Indian-origin fuel through global traders.
Ukrainian forces have stepped up attacks on Russian oil infrastructure in recent months, triggering fires at several facilities and leaving motorists facing long queues at petrol stations, including in Moscow.
The disruption has contributed to an unusual fuel shortage in Russia, one of the world’s largest energy-producing nations.
The Associated Press has recorded more than 50 reported Ukrainian strikes on Russian oil refineries, storage depots, terminals and other energy facilities since March. Similar attacks have also taken place in Crimea, which Russia illegally annexed in 2014.
What is Nayara Energy?
Nayara Energy is an oil refining and marketing company that operates India’s ‘second-largest private-sector refinery’ in Vadinar, Gujarat, according to the company’s website. The facility has the capacity to process around 400,000 barrels of crude oil per day.
The refinery was acquired from Indian conglomerate Essar in 2015, when the company was facing financial difficulties. However, the deal was more complicated than a conventional corporate acquisition and involved an arrangement between the Indian and Russian governments, as well as private entities, backed by Prime Minister Narendra Modi and Russian President Vladimir Putin, Al Jazeera reported.
The transaction came as Putin’s government was looking to reduce its stake in Rosneft, Russia’s state-owned oil giant. Indian state-run oil companies acquired a stake in Rosneft, which subsequently purchased a 49% stake in the refinery that later became Nayara Energy.
Russian asset management firm United Capital Partners owns another 49% stake in Nayara.
Describing its role in India’s energy sector, Nayara says in its mission statement that it is “in India and for India – highly driven and committed to fuel the nation’s growing demand for energy”.
The company also says, “We operate India’s fastest-growing private fuel station network, offering quality products to our customers across the country”.
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