Nayara Energy Ramps Up Refinery Operations to Over 90% Capacity Using Russian Oil

Russia-backed Indian refiner Nayara Energy has increased crude processing at its Vadinar refinery to 90–93% of capacity, recovering from a sharp slowdown earlier this year following European Union sanctions. The refinery, which has a capacity of 400,000 barrels per day, had reduced operations to about 70–80% after sanctions in July disrupted exports and forced key suppliers like Iraq and Saudi Arabia to halt crude sales.

The rebound comes as Nayara boosts domestic fuel sales, including supplies to state-owned Hindustan Petroleum Corporation Ltd (HPCL), according to sources familiar with the matter. The company is currently processing only Russian oil, arranged by Rosneft and sold through intermediaries. Before the sanctions, Nayara’s refinery was running above full capacity at 104%.

Rosneft, which holds a 49.13% stake in Nayara and was sanctioned by the United States last week, continues to play a key role in facilitating Nayara’s crude supplies. While details on payment mechanisms remain unclear, sources suggest the refiner is using non-sanctioned channels and possibly settling dues through product exports. Nayara operates over 6,600 retail fuel outlets across India and is expected to maintain Russian oil purchases despite global sanctions pressure.

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