logo
New EU Russia curbs may bolster Indian oil refiners' reliance on traders

New EU Russia curbs may bolster Indian oil refiners' reliance on traders

Business Standard16 hours ago
Indian private refiners that have leveraged cheap Russian crude to boost margins will be forced to find workarounds and rely more on traders to find new markets for their products after the latest round of European Union sanctions, traders and industry sources said.
Russia is India's top oil supplier, and refiners such as Reliance Industries and Nayara Energy have benefited in recent years from pressure on Russian crude prices from sanctions linked to its invasion of Ukraine. Many have then exported refined products to buyers in Europe.
However in its 18th package of sanctions against Russia, approved on Friday, the European bloc banned imports of refined petroleum products made from Russian crude coming from third countries, excluding a handful of Western nations.
It has also placed direct sanctions on Nayara Energy, a refinery backed by Russian oil major Rosneft. The package will be phased in over six months.
Reliance, India's largest buyer of Russian oil and refined products exporter, shipped an average of 2.83 million barrels of diesel and 1.5 million barrels of jet fuel per month to Europe in the first seven months of this year, LSEG shiptracking data showed.
That roughly accounted for nearly 30% and 60% of its respective exports of the two products.
Nayara Energy typically exports four million barrels or more of refined products including diesel, jet fuel, gasoline and naphtha per month, though only jet fuel typically heads to European markets, LSEG and Kpler shiptracking data showed.
Under the sanctions, traders are likely to play a bigger role in placing refined products made from Russian crude, the sources said. Given the long phase-in time, they are likely to get creative with routes, they added.
For diesel, traders are likely to swap Indian supplies with Middle East cargoes for export to Europe, Singapore-based traders said. They may also ship Indian cargoes to floating storage facilities in the Middle East or West Africa to be re-exported, they added.
For jet fuel, Indian refiners may either divert cargoes to local markets or ship supplies to Asia, they said.
Reliance and Nayara did not immediately respond to requests for comment.
The changes will benefit traders by generating more trade flows, but will be costly for producers and consumers, said an Asian trader. Europe, heading into winter, may have to pay higher prices for refined fuel, he added.
Nayara said in a statement on Monday it condemned the EU's "unjust and unilateral" decision to impose sanctions on the company, while India said on Friday it does not support the EU's "unilateral sanctions".
Indian state refiners, which also buy Russian crude, are likely to be less affected by the sanctions as they sell most of their fuel locally and export through tenders, mostly to buyers in Asia, including Singapore, refining sources said.
Indian state refiner Mangalore Refinery and Petrochemicals Ltd said the company's diesel exports were unlikely to be affected by the latest sanctions. Traders in recent months sold some of MRPL's diesel parcels in the UK, according to LSEG. "We don't directly sell our diesel to the end customer. It is all picked up through a tendering process by a trader," managing director M Shyamprasad Kamath said, adding that he does not see problems in selling refined fuels due to the sanctions.
Following the EU sanctions, Nayara Energy amended the terms of a naphtha tender issued on Monday to obtain payment in advance, a tender document seen by Reuters showed.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Full Briefing: Speaker Mike Johnson 'Blesses' Rep. Massie; Shuts Door On Epstein Files House Vote
Full Briefing: Speaker Mike Johnson 'Blesses' Rep. Massie; Shuts Door On Epstein Files House Vote

Time of India

time23 minutes ago

  • Time of India

Full Briefing: Speaker Mike Johnson 'Blesses' Rep. Massie; Shuts Door On Epstein Files House Vote

Putin Dollar Shock For Trump After BRICS Declaration? Russia's Big De-Dollarisation Announcement Russian Deputy Foreign Minister Sergey Ryabkov clarified that BRICS nations don't aim to replace the US dollar, but rather seek alternatives for mutual settlements to circumvent US sanctions. He stated BRICS intends to trade in national currencies, with Russia already conducting 90% of payments with partners in local denominations. This counters US President Trump's concerns and threats of tariffs on BRICS countries, who are also developing "BRICS Pay," a decentralized blockchain payment system for cross-border transactions. 42.2K views | 2 days ago

Now Delivering Comfort at Blink Speed - VIP Clothing Limited Collaborates with Blinkit
Now Delivering Comfort at Blink Speed - VIP Clothing Limited Collaborates with Blinkit

Business Standard

time28 minutes ago

  • Business Standard

Now Delivering Comfort at Blink Speed - VIP Clothing Limited Collaborates with Blinkit

VMPL Mumbai (Maharashtra) [India], July 22: India's leading innerwear brand, VIP Clothing Limited, is leaving no stone unturned to transform innerwear accessibility and convenience for Indian consumers. VIP Clothing Limited has now partnered with Eternal Limited's Blinkit to launch its flagship sub-brands, VIP and Frenchie, on the quick-commerce platform. According to the reports, the launch will go live in Karnataka and NCR first, followed by Gujarat, West Bengal, Maharashtra, Rajasthan, Telangana, and Uttar Pradesh in the coming days. VIP Clothing Limited's latest partnership marks yet another strategic milestone for the innerwear brand. Recently, VIP Clothing Limited collaborated with Swiggy Instamart and Zepto and made VIP and Frenchie ranges available to Indians within minutes across India. Now, the addition of Blinkit to their Q-commerce portfolio will not only further integrate quality innerwear into consumers' daily lifestyle needs but also strengthen VIP Clothing Limited as the Q-commerce innerwear brand! Kanishk Pathare, Head - D2C, VIP Clothing Limited., expressed his views on the Blinkit partnership. Pathare said, ""For us at VIP, it's all about meeting our consumers where they live, work, and shop - and doing it at lightning speed! Teaming up with Blinkit isn't just a partnership; it's a supercharger for our D2C game, making sure our VIP and Frenchie styles are literally just minutes away. This is how we're reshaping innerwear retail, keeping it fresh, relevant, and totally in sync with how India wants to shop today!" "The future is all about understanding consumer needs and meeting them where they need the brand to be.", added Kapil Pathare, Deputy Managing Director at VIP Clothing Limited. Talking about the expansion plans, he said, "2025 has been the year of scaling operations for us. We've partnered with e-commerce platforms and quick-commerce platforms while exploring newer physical retail stores and markets. This is only the beginning. Our current strategies and future plans will ensure our availability to our consumers in every possible way." VIP Clothing Limited's collaboration with multiple Q-commerce platforms is nothing short of a retail innerwear revolution. The brand's progressive ways of ensuring consumer access to trusted premium innerwear with unmatched convenience are bound to enhance Indian innerwear purchase habits and fortify VIP Clothing Limited's vision of being a holistic wardrobe brand. About VIP Clothing Limited.: VIP Clothing Limited has been a pioneer in the fashion industry for over 54 years and is known for its commitment to quality and customer satisfaction. With a diverse portfolio of brands, VIP Clothing Limited continues to innovate and set trends in the apparel market. To know more, visit: (ADVERTORIAL DISCLAIMER: The above press release has been provided by VMPL. ANI will not be responsible in any way for the content of the same)

Indian Cities Will Need Over $2.4 Trillion By 2050 To Tackle Climate Risk: Report
Indian Cities Will Need Over $2.4 Trillion By 2050 To Tackle Climate Risk: Report

NDTV

time37 minutes ago

  • NDTV

Indian Cities Will Need Over $2.4 Trillion By 2050 To Tackle Climate Risk: Report

New Delhi: Indian cities are becoming increasingly more vulnerable to floods, heatwaves, and other climate-related risks and will require over 2.4 trillion US dollars in investments by 2050 to build resilient and low-carbon infrastructure, according to a World Bank report released on Tuesday. The report notes that Indian cities hold tremendous potential as centres of economic growth, with 70 per cent of new jobs coming from cities by 2030. "However, timely action is needed for cities to deal with impacts from extreme weather events and avert billions of dollars in future losses," the report 'Towards Resilient and Prosperous Cities in India' states. The report, prepared in partnership with the Ministry of Housing and Urban Affairs, stated that "Annual economic losses from rain-related flooding are currently estimated at 4 billion dollars. These are projected to rise to five billion dollars by 2030 and between 14 and 30 billion dollars by 2070 if no remedial action is taken." According to the report, much of the urban expansion is occurring in "flood-prone and heat-vulnerable areas." The report identifies Delhi, Chennai, Surat and Lucknow among cities most exposed to urban heat island effects and flood risks, particularly due to settlement expansion into vulnerable areas. "In Delhi, the report highlights risks linked to rising temperatures and urban flooding. Heat stress is also expected to intensify. Between 1983 and 2016, exposure to dangerous heat levels increased by 71 percent in India's 10 largest cities, rising from 4.3 billion to 10.1 billion person-hours per year," the report added. The report raised concerns about heat-related deaths. "If emissions continue at current levels, annual heat-related deaths may rise from 1,44,000 to more than 3,28,000 by 2050. Around 20 percent of working hours in major Indian cities could be lost due to high heat stress conditions," it says. Heat mitigation alone could increase India's Gross Domestic Product by up to 0.4 per cent and save up to 130,000 lives annually by 2050, the report states. According to the report, the country's urban projected population will be around 1.1 billion by 2070. "More than 144 million new urban homes will be required, doubling the current housing stock," the report states. To offset these risks, the World Bank estimates that India will need to invest 2.4 trillion dollars by 2050 and 10.9 trillion dollars by 2070 across sectors such as housing, public transport, solid waste management, and municipal services. "However, India currently spent around 10.6 billion dollars per year from 2011 to 2018. India's current spending on urban infrastructure and services is -0.70 per cent of GDP, which is much lower than other countries and must be substantially increased", the report states. "This is both a challenge and an opportunity," said Auguste Tano Kouame, World Bank Country Director for India. Without timely action, climate risks such as flooding and extreme heat will become much more severe, Kouame added. The report states that public financing alone will not be sufficient to meet this demand. It calls for increased private sector investment through tools such as green bonds, blended finance, and access to international climate funds. The report recommends strengthening the financial autonomy of urban local bodies and improving their capacity to plan and implement bankable projects. "India's urban population stood at 480 million in 2020 and is projected to reach 951 million by 2050 and over 1.1 billion by 2070. According to the report, an estimated investment of 150 billion dollars over 15 years could enable 60 per cent of existing Indian cities to implement flood mitigation measures. The report was supported by the Global Facility for Disaster Reduction and Recovery, a multi-donor trust fund that helps countries strengthen disaster and climate resilience.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store