Saudi Arabia, Iraq Halt Oil Supply to Indian Company Nayara Energy

India, already facing diplomatic isolation and economic challenges, has suffered another major setback as Saudi Arabia and Iraq cut off crude oil supplies to Indian refiner Nayara Energy, Reuters reported.

According to Reuters, Saudi state oil giant Aramco has stopped supplying crude to Nayara’s refinery in Vadinar, Gujarat. Iraq’s state oil marketer SOMO has also suspended sales to the company.

This move follows European Union sanctions targeting Russian-backed companies. Sources told Reuters that since July, Nayara has not received any oil from Saudi Arabia or Iraq.

In August, Nayara relied entirely on Russian crude imports. Normally, the company buys around 20 million barrels of Iraqi oil and 10 million barrels of Saudi crude each month, but received none last month.

Because of sanctions, Nayara is struggling with crude procurement, product sales, and shipping. Its refinery is currently operating at just 70–80% capacity. The company has also resorted to using unregistered “dark fleet” tankers for transportation.

Reuters added that Nayara’s CEO resigned in July, while the Russian embassy confirmed that Rosneft continues to directly supply crude to the Indian company.

Experts warn that the situation poses a serious challenge to India’s energy security, while Indian companies bear the cost of the Modi government’s defiance of repeated EU warnings.