Russian Rosneft holds a 49.13% stake in Nayara. Meanwhile, tensions mount as Trump targets India with steep tariff threats over its Russia ties.
Russian-backed Indian refiner Nayara Energy has exported its first gasoline cargo since the privately-owned company was sanctioned by the European Union on July 18, according to a Reuters report.
Oil tanker Tempest Dream, carrying about 43,000 metric tons of gasoline, sailed out on August 4 to Sohar, Oman, the report read.
Why is it significant?
On July 18, the European Union added Nayara Energy to its sanctions list as part of its latest crackdown on Russian-linked energy companies.
Russian state-owned oil giant Rosneft holds a 49.13% stake in Nayara Energy’s refinery in Vadinar, Gujarat. The remaining ownership lies with Kesani Enterprises, a special purpose vehicle (SPV), along with individual investors.
Nayara’s Vadinar facility processes around 400,000 barrels of crude oil per day and operates a network of over 6,300 fuel stations across the country.
The EU sanctions were primarily aimed at cutting down the revenues of Russia’s oil and energy sector. It imposed an import ban on refined petroleum products made from Russian crude oil.
Simultaneously, the United States spoke about stricter penalties for countries buying Russian crude, naming India, China, and Brazil as potential targets for future sanctions.
Nayara also found itself in a tough spot after shippers, including India-based Seven Islands Shipping and Great Eastern Shipping, asked the company to release the three clean products tankers from their contracts, citing concerns over the sanctions.
Tariff Wars: US Turns Up The Heat On India
The knockdown effect of the Russia-Ukraine war reached India’s shores with the US President Donald Trump threatening to significantly increase tariffs on India, accusing the country of profiting from Russian oil amid the ongoing war in Ukraine.
In a Truth Social post on Monday, Trump claimed India is buying large quantities of Russian oil and reselling it on the open market “for big profits.” “They don’t care how many people in Ukraine are being killed by the Russian War Machine,” he wrote. “Because of this, I will be substantially raising the Tariff paid by India to the USA.”
However, Trump’s comments drew a firm response from India, with Foreign Ministry spokesperson Randhir Jaiswal stating on X that targeting India is “unjustified and unreasonable.” He added that India will take all necessary measures to safeguard its national interests.
This comes after Trump announced a 25% tariff on Indian imports to the U.S. due to, among other things, strong trade ties with Russia. He even threatened India with a ‘penalty’, citing its heavy dependency on Russian oil and military equipment.
Market Reaction
The broader equity markets reeled under pressure on Tuesday, with key export sectors like pharmaceuticals, IT, and textiles feeling the heat.
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