India’s Rosneft-backed Nayara Energy is struggling to secure ships to transport fuel after being placed under European Union sanctions, Reuters reports.

The refinery, among the largest in India’s private sector, has reportedly appealed to the government for assistance in resolving the disruption. The sanctions, imposed last month, have prompted widespread cancellations of contracts by shipping companies. According to the Reuters report, some vessel owners have sought early termination of agreements, while technology partners, including Microsoft, have suspended key services crucial to operations.

As a result, Nayara has supposedly been forced to scale back oil processing, raising the prospect of fuel shortages at its branded petrol stations with the result being that New Delhi is said to be weighing the deployment of India-flagged vessels to safeguard domestic supply, though shipowners have voiced concerns over potential risks, particularly the absence of insurance cover.

The transport, energy and foreign ministries are now understood to be jointly engaged in tackling the problem, with a high-level meeting expected shortly.

However, according to the Tass news agency in Russia, citing anonymous industry sources in New Delhi, Indian companies are continuing to import Russian oil despite a reported decline in volumes.

To this end, Tass reports that transactions with Moscow have not in fact ceased, and purchases, even if limited, remain driven by price competitiveness.

Said industry insiders speaking to Tass say oil firms in India will buy from any supplier offering a commercially advantageous deal, whether Russian or otherwise, with procurement patterns shifting month to month in response to global price movements, supply conditions, oil quality, seasonal demand and logistical factors.

Tass further claims that the Indian government maintains there has been no interruption in Russian oil supplies, noting that such imports are not subject to international sanctions.

In recent days, the United States has imposed an additional 25% tariff on Indian goods in connection with these purchases, effectively doubling the rate to 50% with Washington criticising India’s reliance on Russian energy and military equipment, placing it alongside China as a major buyer.