Indian Refiner Nayara Seeks New Local Bank After EU Sanctions

(Bloomberg) -Mumbai-based oil refinery Nayara Energy Ltd., Russian energy giant Rosneft PJSC partially owned by the state officials, EU sanctions are familiar with the issue of larger banks after the UCO Bank Ltd. He asked him to establish a relationship with a domestic lender.

Nayara executives said he met with the officials of the Indian Ministry of Finance last week. The company is looking for a local bank for financing and cable payments for crude oil imports and to help you receive payment for refined fuel products export. In July, a rating company said that the liquidity of Nayara was healthy.

Nayara, organized in specially, said that some banks could find reluctance to provide basic services after being approved by the European Union in July. In 2018, Rafiner is looking for a smaller Indian lending to the global financial markets to reduce the risk of secondary sanction by referring to UCO Bank, which facilitates oil trade with Iran.

Nayara’s challenges may be united with President Donald Trump’s threat of 25% tariff and additional punishment on India’s trade relationship with Russia. Since the forces of Moscow occupied Ukraine in 2022, Russian oil flows to India has increased and Indian refineries have allowed discounted raws to benefit from discounted raws.

A nayara spokesman Bloomberg did not respond immediately to the e -mail looking for comments. The spokesman of the Ministry of Finance did not respond to an e -mail looking for comments.

According to ship monitoring data, Rafiner has installed at least two clean petroleum products or CPP cargoes since its approved by the European Union last month.

Local rating company Careedge, according to a statement made in July, Nayara’s low leverage and healthy liquidity as positive factors, the company said the company is equivalent to cash and 105.5 billion rupees ($ 1.2 billion). Nevertheless, although direct exports to the EU can be “negligible ,, the export constitutes more than a quarter of the company’s business.

Rosneft PJSC has more than 49% of Nayara, which constitutes about 8% of India’s refining capacity and 7% of the retail fuel network. A share of 49 %, a consortium, Kesani Enterprises Co. And the remaining retail is kept by investors. Nayara reduces the running rates in the Western Indian refinery after encouraging the sanction buyers to stay away.

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