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India.com
6 days ago
- Business
- India.com
Donald Trump's sanctions working? SBI bans transactions of Nayara Energy with Russian connection due to...
Donald Trump- File image New Delhi: In a significant development amid the US's increasing pressure on India over economic and trade relations with India, the State Bank of India (SBI) has stopped handling Nayara Energy's trade and foreign exchange transactions due to concerns over US and EU sanctions following a recent US tariff hike. Notably, Nayara, formerly Essar Oil, was acquired in 2017 by a Rosneft-led group and operates India's second-largest refinery (20 MTPA) with 8% of national refining capacity and over 6,500 petrol pumps. Why SBI has banned transactions of Nayara Energy? The Russian company Nayara Energy imports crude, refines it into fuels, and sells domestically and overseas. The trade with troubles escalated after the EU's July sanctions package capped Russian crude prices at $47.6 per barrel, making transactions more difficult amid the increasing threats of tariffs from US. Microsoft restores services to Russian oil firm Nayara Energy In another significant update, Tech giant Microsoft informed that services were restored to the Russia-backed oil exploration and marketing company Nayara Energy, two days after Nayara alleged that Microsoft had abruptly cut off access to its data and services. In a statement, the company said it is 'committed to supporting all its customers in India and worldwide and has restored services for Nayara Energy'. 'We are engaged in ongoing discussions with the European Union towards service continuity for the organisation,' said a company. How is Nayara Energy related to Russia? Nayara Energy, which operates fuel retail outlets in India, is primarily owned by Russia's Rosneft, which owns nearly 49 per cent of the company. Trafigura and UCP Investment Group, both foreign companies, jointly own the majority of the remaining stake via an Indian consortium. Earlier this week, Nayara Energy filed a petition in the Delhi High Court, alleging that the US-based technology firm abruptly and unilaterally suspended essential services without notice. (With inputs from agencies)
Time of India
6 days ago
- Business
- Time of India
Fresh trouble for Russia-backed Nayara Energy! SBI stops trade & foreign currency transactions of Indian refinery; doesn't want to risk US tariffs, EU curbs
Nayara Energy has been facing challenges since July, when the European Union enacted its 18th sanctions package. (AI image) Russia-backed Indian refinery Nayara Energy is faced with a fresh challenge. India's largest public sector lender SBI has stopped processing international trade and forex transactions for Nayara Energy following recent US tariff hikes. The bank's decision aims to avoid potential sanctions from the US and European Union, a source told ET. US President Donald Trump has announced a 25% additional tariff on India for its crude oil trade with Russia. Nayara Energy was formed after the Rosneft-led purchase of Essar Oil's Vadinar refinery (20 mtpa) in August 2017. The organisation sources crude oil internationally and holds approximately 8% of India's refining capacity, which exceeds 256 MMTPA, ranking second in Asia. The company maintains a nationwide network of more than 6,500 fuel retail outlets. Also Read | Symbol of India-Russia ties takes a hard hit! How Russia-backed Indian refinery Nayara Energy is navigating a perfect storm - big hurdles challenge growth Why SBI has stopped Nayara transactions Nayara Energy has been facing challenges since July, when the European Union enacted its 18th sanctions package which limited fuel imports from Russia and established a $47.6 per barrel ceiling on Russian crude prices. "These European sanctions imposed on July 18 were the last straw. All banks with international branches and operations have to adhere to the government laws to ensure that they do not attract regulatory scrutiny," said the person cited above. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Uncover The Latest 2025 SUV Prices List In The Philippines SUV Deals | Search Ads Search Now Undo "The last European sanctions along with the US tariffs imposed after that have made the processing of transactions for Nayara difficult." "This call has been taken by the bank very recently after the US sanctions to ensure compliance with international rules," said the person cited above. "There has been no government direction, but every bank has to take a call on how to deal with these issues and SBI has done so." Nayara Energy operates similar to Reliance Industries, processing imported crude oil into petrol and diesel for distribution across India, Europe and Middle East markets. Also Read | Explainer: Donald Trump's 50% tariffs - will India budge on Russia crude oil trade? State Bank of India's decision to limit transactions with Nayara Energy makes it improbable for other financial institutions to engage in business dealings with the company. According to Bloomberg's report last week, Nayara has approached government authorities to facilitate a connection with a bank, specifically UCO Bank, to handle international transactions. This approach mirrors the arrangement UCO Bank previously employed for processing Iranian crude oil transactions. Experts suggest that UCO Bank's minimal global footprint enables it to operate without significant concern about sanctions. Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .
