Saudi Arabia and Iraq have ceased supplying oil to India’s Nayara Energy refinery, which is controlled by Russian state company Rosneft, amid new European Union sanctions. The two Middle Eastern nations traditionally provided approximately 3 million barrels of crude oil per month to the refinery, but deliveries stopped entirely in August.
The suspension of oil supplies from Saudi Arabia and Iraq represents a significant shift for Nayara Energy, which has relied heavily on regional sources to fuel its operations. The move is believed to be part of broader efforts by these countries to comply with EU sanctions targeting Russia and its associated entities.
Nayara Energy has not publicly commented on the reasons for the halt or potential alternative sourcing strategies. The refinery, which plays a major role in India’s oil landscape, may face challenges in maintaining its supply chain amid these disruptions. Industry analysts suggest that the refinery could seek new suppliers or adjust its sourcing preferences in response to the reduced availability from the Middle East.
This disruption highlights the ongoing impact of international sanctions on global oil markets and supply chains. As India continues to navigate its energy needs, the situation underscores the interconnectedness of geopolitics and energy resource flows worldwide.