EU Sanctions Impact Nayara Energy's Operations

Following the European Union's sanctions on Russian oil, Nayara Energy, a Russia-backed Indian refinery, is encountering significant operational challenges. The sanctions, introduced on July 18, have led to shipping operators hesitating to engage with Nayara, and Microsoft has abruptly suspended its IT services for the company.

Nayara Energy, which operates India's third-largest refinery, is majority-owned by Russian entities, including oil giant Rosneft. The company has had to reduce activities at its 400,000-barrels-per-day refinery due to limited fuel storage capacity.

Shipping Contracts Under Threat

Three shipowners have requested the termination of their contracts with Nayara Energy, citing sanctions-related issues. This development adds to the refinery's growing list of challenges, including the resignation of its CEO and the loss of Microsoft's IT support.

Legal and Operational Challenges

Nayara Energy has filed a legal case against Microsoft after the tech giant discontinued its services, leaving employees without access to essential communication tools. The company has since partnered with local IT provider Rediff.com to mitigate some of these challenges.