Nayara Changes Payment Terms After EU Sanctions
Nayara Energy has revised the payment terms for its latest naphtha export tender in response to recent sanctions imposed by the European Union. The company now requires advance payment or an irrevocable letter of credit for the cargo, which is scheduled for loading between August 14 and 18.
The cargo volume is expected to be between 33,000 to 35,000 metric tonnes, and the new payment terms are aimed at ensuring financial security amid tightening international restrictions.
Sanctions Trigger Strategic Shift
The policy change follows the EU’s inclusion of Nayara Energy in its latest sanctions package due to the company’s part ownership by Russian oil major Rosneft. Though Nayara operates independently in India, the sanctions have forced it to reevaluate its export and payment policies to avoid compliance risks.
The company also issued a separate tender for jet fuel exports, but changes to its terms are still under consideration.
Refiners Brace for Financial Constraints
Industry analysts believe that Indian private refiners like Nayara may increasingly rely on trade intermediaries or oil swap arrangements to sustain exports. With direct financial transactions under scrutiny, companies are exploring alternate routes to ship fuel without violating international restrictions.
Floating storage and rerouted shipping channels may also become more common, though they could increase logistical costs.
Government Stance Unchanged
India has maintained its position that unilateral sanctions by blocs like the EU are not binding. Officials reiterated that India only recognises sanctions imposed through the United Nations and will act to protect its energy supply chains from foreign pressure.
State-run oil companies are expected to remain unaffected by these sanctions, as their export channels are largely Asia-focused and less exposed to Western financial systems.
