Mumbai: In a move with significant implications for India’s energy trade, the State Bank of India (SBI) has halted international trade and foreign currency transactions with Russia-backed Nayara Energy.
Sources told Business Line that SBI’s decision comes amid growing concerns over potential exposure to U.S. secondary sanctions and EU trade restrictions, given the West’s continuing embargoes against Moscow. Nayara, which operates India’s second-largest single-site refinery in Vadinar, Gujarat, is majority-owned by Russian entities.
The halt in foreign banking support could disrupt Nayara’s crude imports and refined product exports, forcing the company to seek alternative financing arrangements through smaller banks or non-dollar-denominated trade.
Industry experts believe the move reflects a cautious approach by Indian lenders to avoid being caught in the crossfire of global sanctions regimes. “This is less about domestic policy and more about protecting banking operations abroad,” said a senior economist.
Nayara Energy has yet to issue an official statement, but insiders indicate the company is working with the government to secure alternative trade channels and limit disruption to operations.