Indian refiner Nayara Energy has changed the payment terms to sell a spot naphtha cargo after the EU’s latest sanctions package hit the company in which Russia’s oil giant Rosneft holds 49%, a tender document seen by Reuters showed on Monday.
Following Friday’s sanctions, a Nayara tender to sell a spot naphtha cargo Nayara is seeking advance payment or a letter of credit from the potential buyer for loading of the cargo in the middle of August, according to the document Reuters has seen.
Last Friday, the EU adopted the 18th sanctions package against Russia, targeting a hundred more ‘shadow fleet’ tankers, energy trade, and traders and banks enabling it.
Most notably, the package includes lowering the price cap on Russian crude oil to $47.60 from $60 per barrel, in a bid to curtail Russia’s energy revenues, with the lower price cap “to align it with current global oil prices,” the EU said.
The U.S. hasn’t joined the lower EU price cap, so it’s uncertain if the lower cap would have effect on Russia’s oil trade.
In a first move against customers of Russian oil, the EU expanded sanctions on entities doing business with Russian oil, including via asset freezes, travel bans, bans on providing resources. The bloc sanctioned Russian and international companies managing shadow fleet vessels, traders of Russian crude oil, and a major customer of the shadow fleet – the Nayara Energy refinery in India with Rosneft as its main shareholder.
On Sunday, Rosneft slammed the EU sanctions on Nayara Energy as “unjustified and illegal,” as the Russian firm holds less than 50% in the Indian refiner, which is a strategically important asset for the Indian energy industry.
“The imposition of sanctions against the refinery directly threatens India’s energy security and will have a negative impact on its economy,” Rosneft said.
By Tsvetana Paraskova for Oilprice.com
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