- Refiner struggles to supply fuel to retail stations, cuts crude runs.
- EU sanctions trigger shipping contract terminations and Microsoft service suspension.
- India considers using locally flagged vessels for Nayara’s fuel transport.
Russia-backed private refiner Nayara Energy, which was hit with sanctions by the European Union last month, has reached out to India’s shipping ministry to secure vessels for transporting refined fuels, according to a government source, reports Reuters.
Struggling to Keep Fuel Supply Steady
Nayara, facing the brunt of sanctions, is having a tough time finding ships to deliver refined fuels to its retail outlets across India. The company has already scaled back crude processing at its refinery due to logistical challenges.
Effects of EU Sanctions
Since the EU sanctions were put in place, Nayara has run into issues like shipping companies cancelling contracts and a temporary halt of essential services from Microsoft.
Government Support on the Horizon
Officials from the shipping, oil, and foreign affairs ministries are planning to meet soon to discuss Nayara’s request. They will consider the option of using India-flagged vessels owned by local shipping companies to assist the refiner’s operations.
Insurance and Operational Challenges
Vessel owners are worried about securing insurance for voyages involving Nayara, which adds another layer of complexity to the situation, the source mentioned.
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Source: Reuters
