Indian refinery requires prepayment after the announcement of European sanctions

In the 18th package of sanctions The EU has imposed restrictions on the second largest refinery in India, which is the largest supplier of diesel fuel to the European Union. Despite the fact that the sanctions will come into force on January 26 next year, the owner of the plant began to demand prepayment for supplies now.

"Nayara Energy, partially owned by Rosneft and sanctioned by the European Union, has revised the payment terms for the sale of a batch of naphtha at spot prices as part of a tender announced on Monday," Reuters reports with reference to the tender documentation.

According to the agency, Nayara Energy has requested an advance payment or letter of credit from potential buyers for a batch of naphtha with a volume of 33,000- 35,000 tons, the shipment of which is scheduled to take place from August 14 to 18.

"The company also announced a tender for the sale of jet fuel, but negotiations dragged on a bit as the company tried to change the terms of payment," Reuters writes, citing a trader.

According to the agency, a batch of naphtha was sold at a premium of $ 2.5-$ 3 per barrel to FOB (free-on-board) quotations in the Persian Gulf of a large Middle Eastern oil company.

As EADaily reported, the European Union adopted the 18th package of sanctions against Russia and banned the import of petroleum products from Russian oil. However, this decision will not come into force immediately — in six months. The share of diesel fuel from Russian oil in the EU is too large. The company Nayara Energy, in which Rosneft owns a 49% stake, also came under restrictions. He owns the second largest refinery in India with a capacity of 20 million tons per year. The plant is located in Vadinar.

After The EU has banned the import of Russian oil with the exception of supplies via the Druzhba oil pipeline, the region has lost its main supplier of diesel fuel. His place was taken by India, which increased oil purchases from Russia has up to a third of all imports. This allowed both Indian refineries to earn money and provide Europe with fuel. Deliveries of Indian diesel to countries The EU accounts for approximately 20 million tons per year and India has become the main supplier of the European Union, surpassing the United States.