Sanctions choke Nayara's refinery fix: Seeks New Delhi's help for repair gear
Nayara operates a 400,000 barrels-per-day refinery in Gujarat's Vadinar
- Sep 15, 2025,
- Updated Sep 15, 2025 4:01 PM IST
Russian-backed Indian refiner Nayara Energy has sought help from the Indian government to secure critical equipment and raw materials for an upcoming refinery maintenance shutdown, as European Union sanctions block access to key suppliers, Reuters reported on Monday.
Nayara, majority-owned by Rosneft and other Russian entities, has approached the Centre for High Technology, an advisory arm under the oil ministry, asking for support in sourcing specialised equipment, catalysts, and materials needed to keep its operations running, the report said, citing sources.
The company operates a 400,000 barrels-per-day refinery in Gujarat's Vadinar, one of the country's largest, which is slated to undergo mandatory maintenance in February. The last shutdown was carried out in November 2022. By regulation, refineries in India must undergo maintenance roughly every four years to ensure safety and efficiency, with shutdowns typically lasting between 30 and 50 days.
"They can delay the mandatory shutdown by a few months but they cannot postpone it beyond four to six months," one source told Reuters.
The challenge for Nayara stems from sanctions imposed by the EU in July, which have made payments and procurement of specialised equipment from Western firms difficult. Nayara has already been forced to rely entirely on Russian crude imports, after traditional suppliers like Iraq and Saudi Arabia halted deliveries due to payment issues.
For the upcoming turnaround, the company requires catalysts for its hydrocrackers, hydrotreaters, and reformers. While some catalysts can be sourced from China and Russia, others are only available from U.S. and European manufacturers. "Catalysts are mainly available from the U.S. and European companies. Because of sanctions Nayara may not be able to get them," said B.N. Bankapur, former head of refineries at state-run Indian Oil Corp.
Apart from catalysts, Nayara also needs heavy-duty equipment like compressors, pumps, and valves, which are far harder to procure under sanctions, the report said. Nayara could potentially turn to domestic, Russian, or Chinese substitutes, but compatibility concerns remain. That would require ensuring that they are compatible and would not adversely impact yields or quality, Bankapur added.
Russian-backed Indian refiner Nayara Energy has sought help from the Indian government to secure critical equipment and raw materials for an upcoming refinery maintenance shutdown, as European Union sanctions block access to key suppliers, Reuters reported on Monday.
Nayara, majority-owned by Rosneft and other Russian entities, has approached the Centre for High Technology, an advisory arm under the oil ministry, asking for support in sourcing specialised equipment, catalysts, and materials needed to keep its operations running, the report said, citing sources.
The company operates a 400,000 barrels-per-day refinery in Gujarat's Vadinar, one of the country's largest, which is slated to undergo mandatory maintenance in February. The last shutdown was carried out in November 2022. By regulation, refineries in India must undergo maintenance roughly every four years to ensure safety and efficiency, with shutdowns typically lasting between 30 and 50 days.
"They can delay the mandatory shutdown by a few months but they cannot postpone it beyond four to six months," one source told Reuters.
The challenge for Nayara stems from sanctions imposed by the EU in July, which have made payments and procurement of specialised equipment from Western firms difficult. Nayara has already been forced to rely entirely on Russian crude imports, after traditional suppliers like Iraq and Saudi Arabia halted deliveries due to payment issues.
For the upcoming turnaround, the company requires catalysts for its hydrocrackers, hydrotreaters, and reformers. While some catalysts can be sourced from China and Russia, others are only available from U.S. and European manufacturers. "Catalysts are mainly available from the U.S. and European companies. Because of sanctions Nayara may not be able to get them," said B.N. Bankapur, former head of refineries at state-run Indian Oil Corp.
Apart from catalysts, Nayara also needs heavy-duty equipment like compressors, pumps, and valves, which are far harder to procure under sanctions, the report said. Nayara could potentially turn to domestic, Russian, or Chinese substitutes, but compatibility concerns remain. That would require ensuring that they are compatible and would not adversely impact yields or quality, Bankapur added.