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Russia-linked Indian refiner put under credit watch, CARE Ratings says

Oil main Rosneft owns a 49.13% stake in Nayara whereas a similar-sized holding is break up between world commodities buying and selling home Trafigura and Cyprus-based Russian funding group United Capital Partners.

India’s CARE Ratings Monday mentioned it has positioned the long-term rankings of Indian refiner Nayara Energy, half owned by Russia’s Rosneft, on ‘credit watch with negative implications’ as a consequence of sanctions towards Moscow for its invasion of Ukraine. Oil main Rosneft owns a 49.13% stake in Nayara whereas a similar-sized holding is break up between world commodities buying and selling home Trafigura and Cyprus-based Russian funding group United Capital Partners.

CARE has put the rankings of Nayara’s long run financial institution mortgage of 171.5 billion rupees ($2.23 billion) and non-convertible debentures of 25.42 billion rupees beneath credit score watch with adverse implications, it mentioned in a press release. Nayara operates the 400,000 barrel-per-day (bpd) Vadinar refinery in India’s western Gujarat state and has a fleet of about 6,500 retail gas stations within the nation. Reuters final week reported that Nayara will discover funding tougher as a consequence of its hyperlink with Russian entities.
CARE Ratings mentioned it will proceed to observe the scenario and would take motion on the ranking in case of any opposed influence of the conflict on Nayara’s shareholders and the Indian firm.

The ranking company nevertheless mentioned Nayara shouldn’t be at current impacted by western sanctions towards Russia because it buys oil from producers within the Middle East, Egypt and Latin America and exports most of its refined fuels to the Netherlands and Far East.”Nonetheless, given the severity of the conflict scenario and the resultant world backlash by the use of sanctions on Russia and sure Russian entities, there’s a number of uncertainty over the precise ramifications of the scenario on Nayara’s shareholders”.

In 2020, Didier Casimiro, the previous president of Rosneft Trading S.A., needed to resign from the board of Nayara after he was positioned on a sanctions checklist by the United States.



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