The Indian oil refinery, co-owned by Rosneft, was forced to tighten the conditions for the sale of its products, which is now closed to Europe. The supplier is afraid that counterparties and banks will stop working with him.
Nayara Energy, in which Rosneft owns 49.13% of shares and which owns a refinery in the city of Vadinar with a capacity of 20 million tons per year, began to demand prepayment or a commodity letter of credit, paid upon presentation of shipping documents, before loading a batch of naphtha in August. This follows from the tender documentation distributed among importers of refinery products, which Bloomberg has familiarised with.
During previous tenders, the company did not make such requirements. The change occurred after the European Union last week included Nayara Energy in the 18th package of sanctions, which, in particular, banned the import of oil products produced from Russian oil. Previously, such deliveries were authorised in case of significant processing of Russian raw materials. Now the EU seeks to deprive the same Rosneft of income from the operation of the refinery, which buys its oil for the production of fuel, as well as to hit Turkish schemes that pass off Russian products as processed.
The change in the terms of the tender “emphasises how far-reaching the latest EU sanctions are,” says Kpler analyst Zamir Yusof. According to him, the requirement of prepayment or letter of credit reflects the fears that counterparties may refuse to carry out transactions, and banks – to settle them. Nayara is one of the largest in India – almost 7,000 gas stations and other fuel outlets
At the same time, India buys almost 40% of crude oil from Russia.
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