Saudi and Iraqi Oil Supply to India’s Nayara Energy Halted

India has suffered a fresh blow on the economic front as both Saudi Arabia and Iraq have suspended crude oil supplies to Nayara Energy, one of the country’s leading refiners.

According to a Reuters report, Saudi Aramco has stopped supplying crude to Nayara’s Vadinar refinery in Gujarat, while Iraq’s state oil marketer SOMO has also ceased sales. The move comes in the wake of European Union sanctions targeting companies linked to Russia.

Sources revealed that since July, Nayara has not received any shipments from either Saudi Arabia or Iraq. In August, the company relied entirely on Russian crude, diverging from its usual imports of around 2 million barrels from Iraq and 1 million barrels from Saudi Arabia each month.

The EU sanctions have complicated Nayara’s oil purchases, as well as the sales and distribution of its refined products. As a result, the refinery is currently operating at only 70–80% capacity. The company has not issued any official statement so far.

Industry experts highlight that Nayara is also struggling with international shipping firms and has increasingly turned to the so-called “dark fleet” of unregistered tankers to sustain operations.

The challenges have already triggered leadership changes: Nayara’s CEO resigned in July amid mounting difficulties. Analysts warn that these developments pose a serious risk to India’s energy security, adding that New Delhi’s defiance of EU warnings is now producing tangible consequences for its energy sector.