Saudi Aramco and SOMO Cut Crude Supply to India's Nayara Energy

Saudi Aramco and Iraq"s state oil company SOMO have ceased crude oil sales to India"s Nayara Energy, following sanctions imposed by the European Union on the Russian-backed refiner in July, sources revealed today.

This decision leaves Nayara, which is majority-owned by Russian entities including oil giant Rosneft, to rely solely on Russian crude imports. In August, the company sourced all its crude oil exclusively from Russia, according to shipping data from LSEG.

Nayara Energy"s predicament underscores the tightening grip of international sanctions on Russian energy interests, particularly as countries like India navigate complex geopolitical landscapes. The sanctions, aimed at curbing Russia"s influence amid ongoing conflicts, have led to significant shifts in global oil supply chains.

The halt in crude supply from Saudi Aramco and SOMO raises questions about Nayara"s future operations and its ability to meet domestic fuel demands. As the situation evolves, the implications for India"s energy security and its broader economic landscape will be closely monitored, especially in light of recent developments regarding international trade dynamics.