Saudi Aramco and Iraq's SOMO have suspended selling crude oil to Indian refining company Nayara after European Union sanctions.

Three informed sources revealed that after the European Union imposed sanctions on Nayara Energy, Saudi Aramco and the Iraqi National Oil Company (SOMO) have stopped selling crude oil to this Russian-backed refining company. According to sources and shipping data from the London Stock Exchange Group (LSEG), after these two Gulf region crude oil exporters suspended supply, Nayara Energy's crude oil imports in August were completely dependent on Russia. Currently, the majority of Nayara's shares are held by Russian entities, including Russian oil giant Rosneft. Data from Kpler and LSEG's shipping data shows that Nayara usually receives about 2 million barrels of Iraqi crude and 1 million barrels of Saudi crude each month, but did not receive any shipments from these two suppliers in August. As of now, SOMO and Nayara Energy have not responded to requests for comments, while Saudi Aramco has declined to comment. Two sources mentioned that the EU sanctions caused Nayara to face payment difficulties when purchasing crude oil from SOMO, but did not disclose further details. Data from Kpler, LSEG, and industry sources indicate that the last batch of Basra crude from SOMO to Nayara was carried by the Very Large Crude Carrier (VLCC) "Kalliopi" and completed unloading at Vadinar port in India on July 29. LSEG data also shows that the last batch of Saudi crude received by Nayara was 1 million barrels of Arab Light carried by the VLCC "Georgios" on July 18, which also loaded the same amount of Basrah Heavy crude. An official from the Russian Embassy in New Delhi stated last month that Nayara is directly sourcing crude oil supply from Rosneft. Other sources indicated that due to the sanctions, Nayara's finished oil sales were hindered, and its refinery in Vadinar port, with a daily processing capacity of 400,000 barrels, is currently running at only 70%-80% capacity. Shipping reports and LSEG data show that Nayara Energy's refinery capacity accounts for about 8% of India's total refining capacity (average of 5.2 million barrels per day). Since the EU sanctions were imposed, the company has faced challenges in fuel transportation, having to rely on so-called "dark fleet vessels" as other shipping companies have pulled out of cooperation. In addition, the CEO of Nayara Energy resigned in July. Last week, the company announced the appointment of an executive from the State Oil Company of Azerbaijan (SOCAR) as the new CEO.