UCO Bank Gets Approval To Work With Sanctioned Refiner Nayara Energy

Core Insights - UCO Bank has received government approval to facilitate trade payments for Nayara Energy Ltd., following sanctions imposed by the EU on the refiner [1][2] - Nayara Energy, part-owned by Russian oil major Rosneft, is seeking assistance from UCO Bank to manage payments for crude oil imports and refined fuel product exports [3][6] - The refiner has faced operational challenges, including the need for advance payments and reduced run rates, due to the sanctions and withdrawal of domestic shipowners [4][5] Group 1 - UCO Bank's engagement with Nayara Energy comes after the latter was sanctioned by the EU, leading to a withdrawal of support from large financial institutions [1][5] - Senior executives from UCO Bank have met with finance ministry officials to discuss the execution of payments for Nayara, with operational details still being finalized [2] - Nayara Energy has approached the government for help in securing vessels for local transportation, as domestic shipowners have ceased operations with the company [4] Group 2 - Rosneft holds just over 49% of Nayara Energy, which represents nearly 8% of India's refining capacity and 7% of its retail-fuel network [6] - The sanctions have led to significant operational adjustments for Nayara, including a shift to advance payments and letters of credit prior to fuel shipments [4] - The State Bank of India, among other institutions, has ceased processing transactions for Nayara due to the risks associated with Western sanctions [5]