Sanctions-hit Nayara scrambles to sustain operations, with New Delhi's help

Core Insights - Nayara Energy, a Russian-owned refinery in India, has significantly increased its use of rail transport for fuel shipments due to sanctions, moving more than double its previous volume to domestic markets and seeking new export customers [1][6] - The Indian government is providing support to Nayara to keep it operational while navigating the complexities of international sanctions [2][4] - Nayara's reliance on Russian oil has intensified following the EU sanctions, making it vulnerable to further disruptions in supply [3][10] Government Support and Challenges - The Indian government has facilitated Nayara's operations by providing tanker trains and approving coastal vessels for product transport, while also being cautious of potential Western backlash [2][7] - Nayara is seeking additional government assistance to source equipment for maintenance, which has been complicated by sanctions [8][12] Operational Adjustments - Nayara has reduced its refinery capacity utilization from 104% to 70-80% due to challenges in finding export buyers and banking support [6][12] - The refinery has redirected its output to domestic markets and is exploring alternative shipping methods, including the use of sanctioned vessels [7][14] Export Dynamics - Prior to sanctions, Nayara exported about 30% of its output, primarily to Western and Asian markets, but has since shifted its focus to the Middle East, Turkey, Taiwan, and Brazil [14] - In September, Nayara's exports dropped to 2.23 million barrels, down from an average of 3.3 million barrels per month earlier in the year [15]