A shipment of Indian diesel fuel from Russia-linked Nayara Energy is heading to China, marking the first such delivery since 2021, as the company’s petroleum product exports remain in limbo following the latest round of European Union sanctions.

Source : Bloomberg

Details : The tanker EM Zenith departed Nayara’s terminal in Vadinar on 18 July, carrying about 496,000 barrels of ultra-low-sulphur diesel, according to Kpler data, a port agent’s report, and vessel tracking information compiled by Bloomberg.

The departure occurred just hours before the EU announced restrictions on the Rosneft-backed refinery as part of new measures targeting Russia’s oil trade.

Initially, the vessel was bound for Malaysia but turned around in the Strait of Malacca and idled off the coast for more than 12 days after several Nayara shipments were blocked following EU sanctions. The tanker has now changed course and is heading to Zhoushan, China.

A Nayara representative did not respond to a request for comment.

The sanctions have also complicated payments for Nayara in recent weeks, forcing the company to require advance payments or letters of credit for fuel deliveries before loading. Due to halted crude oil supplies, the company also cut production at the Vadinar refinery.

According to Kpler, this diesel shipment to China is the first from India since April 2021. It comes amid a warming of bilateral relations between the Asian neighbours.

Background :

• Reliance Industries, the owner of the world’s largest refining complex in Jamnagar, India, may stop buying Russian oil.
• Nayara Energy’s refinery in India, which was sanctioned by the EU last month, has asked the government to help resolve fuel transportation issues.
• Indian stocks fell after US President Donald Trump renewed threats to impose steep tariffs on Indian goods over purchases of Russian oil.

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