A tanker carrying Russian Urals crude oil, originally scheduled to dock at Nayara Energy’s Vadinar terminal on India’s western coast, has diverted to the nearby Mundra port, according to shipping data and industry sources Reuters reports. The redirection follows fresh European Union sanctions announced last week, targeting Russian-linked entities including Nayara Energy, which is 49% owned by Russia’s Rosneft.

The vessel in question — the Omni tanker — had been carrying approximately 700,000 barrels of Urals crude. It arrived off the coast of Gujarat at Vadinar on July 18, but by July 24 its destination had been shifted to Mundra. Satellite tracking data from LSEG and Kpler confirmed that the vessel is now anchored near Mundra port according to Reuters.

While the specific reasons for the diversion were not disclosed, industry observers suggest the move is likely linked to the EU’s latest round of sanctions. These measures, part of a broader crackdown on Russian energy trade and financial flows, have added compliance complexities for ports and refineries dealing with Rosneft-linked cargoes.

Vadinar, located in Gujarat, is one of India’s key oil import terminals. It houses Nayara Energy’s 400,000 barrels-per-day (bpd) refinery, one of the largest in the country. However, in the days following the EU sanctions announcement, two tankers reportedly cancelled loading of refined products at the port, raising questions about the facility's operational stability under the current regulatory environment.

The cargo aboard the Omni has since been taken over by HPCL-Mittal Energy Ltd (HMEL), a joint venture between state-run Hindustan Petroleum Corporation and Mittal Energy Investments. HMEL operates a 226,000 bpd refinery in Bathinda, Punjab. Although located inland, the refinery sources its crude via pipelines from ports along India’s western seaboard.

India has several ports equipped to handle large-scale crude oil imports. In addition to Vadinar and Mundra, other major oil import terminals include Kandla, Sikka, Mumbai Port Trust, and Cochin. Mundra, in particular, has emerged as a versatile alternative for both private and public sector refineries due to its deep-draft facilities and proximity to key infrastructure networks.

Sikka, which primarily serves Reliance Industries' massive Jamnagar refinery complex — the largest refining hub in the world — also plays a pivotal role in India’s import matrix. Mumbai Port Trust and the nearby Jawaharlal Nehru Port handle a combination of crude and petroleum product imports, although their capacity for Very Large Crude Carriers (VLCCs) is more limited. Cochin, on the southern coast, mainly supports Indian Oil Corporation’s Kochi refinery.

For now though, the situation surrounding Nayara Energy’s operations remains unclear. Nayara has been a prominent importer of Russian crude since Moscow began diverting its energy flows eastward following Western sanctions in 2022. India has emerged as a key buyer of discounted Russian oil during this period, consistently importing more than 1mn bpd.

However, the fresh sanctions and increasing regulatory scrutiny may compel Indian refiners to adjust sourcing and logistics strategies. For Nayara, increased reliance on third-party logistics or indirect routes may become necessary if direct deliveries to its refinery face obstacles.

To this end, the diversion of the Omni to Mundra may well be a sign of more such re-routings in the weeks ahead, as refiners and port operators grapple with the implications of evolving trade restrictions.