Nayara Energy to invest Rs 70,000 cr in India; says EU sanctions go against India's interests

Nayara Energy to Invest ₹70,000 Cr Despite EU Sanctions.

Expert Analysis :

• EU Sanctions: Nayara Energy, backed by Rosneft, reaffirmed its ₹70,000 crore investment in downstream projects while calling EU sanctions unjust and harmful to India.

• EU Sanctions Target Nayara: The EU's 18th sanctions package, aimed at weakening Russian revenues, included Nayara Energy among the sanctioned entities.

• Operational Scale: Nayara Energy operates a 20 million tonnes per year refinery in Vadinar, Gujarat, and manages over 6,750 petrol pumps across India.

• Criticism of Double Standards: Nayara criticized the EU’s double standards for sanctioning it over Russian ties while European nations continue importing Russian energy, despite Nayara focusing on India’s domestic population of 1.4 billion Indians and businesses.

• Ownership Structure: Rosneft holds a 49.13% stake in Nayara Energy, while Kesani Enterprises, owned by UCP and Mareterra Group’s subsidiary, holds another 49.13%.

• Condemnation and Investment Commitment: Nayara Energy condemned the EU’s sanctions as unjust and affirmed compliance with Indian laws, reiterating its ₹70,000 crore long-term investment in petrochemicals, ethanol, infrastructure, and ESG projects.

• Past Investments: Since August 2017, Nayara Energy has invested over ₹14,000 crore in India for refining upgrades, a new petrochemical plant, and infrastructure projects.

• National Contribution: Nayara contributes ~8% of India’s refining capacity, 7% of retail petrol pumps, ~8% of polypropylene capacity, and employs 55,000+ people nationwide.

• Financial and Legal Commitment: Nayara Energy highlighted its ₹200 crore annual CSR budget, over ₹2.5 lakh crore in tax payments since August 2017, and adherence to all applicable laws and regulations.