Core Viewpoint - UCO Bank has received government approval to facilitate trade payments for Nayara Energy Ltd., which has faced sanctions from the EU and has been avoided by major financial institutions [1][5]. Group 1: UCO Bank's Role - Senior executives from UCO Bank met with finance ministry officials to discuss leading the execution of payments for Nayara Energy [2]. - Operational details, including currency choice for transactions, are still being finalized [2]. - UCO Bank has previously facilitated oil trades with Iran, making it a suitable candidate for supporting Nayara's trade needs [3]. Group 2: Nayara Energy's Challenges - Nayara Energy has sought government assistance to establish a relationship with a domestic lender to support wire payments for crude oil imports and refined fuel product exports [3]. - Following EU sanctions, Nayara has had to request advance payments or letters of credit before fuel shipments are loaded, leading to reduced operational run rates [4]. - Domestic shipowners have ceased working with Nayara, prompting the company to seek government help in securing vessels for local transportation [4]. Group 3: Impact of Sanctions - Major financial institutions, including the State Bank of India, have stopped processing trade and foreign currency transactions for Nayara Energy due to the sanctions [5]. - Rosneft, which owns over 49% of Nayara, plays a significant role in the company's operations, accounting for nearly 8% of India's refining capacity and 7% of its retail-fuel network [6].