Indian refiner linked to Russia placed under surveillance, according to CARE Ratings

A 3D printed gas pipeline is placed in front of the Rosneft logo displayed in this illustration taken February 8, 2022. REUTERS/Dado Ruvic/Illustration

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NEW DELHI, March 7 (Reuters) – India’s CARE Ratings agency said on Monday it had placed the long-term ratings of Indian refiner Nayara Energy, part-owned by Russia’s Rosneft (ROSN.MM), under “watch with negative implications” because of the sanctions. against Moscow for its invasion of Ukraine.

Oil major Rosneft has a 49.13% stake in Nayara while a similarly sized stake is shared between global commodity trading firm Trafigura and Cyprus-based Russian investment group United Capital Partners.

CARE placed the ratings of Nayara’s long-term bank loan of 171.5 billion rupees ($2.23 billion) and non-convertible debentures of 25.42 billion rupees under review with negative implications, it said. he said in a statement.

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Nayara operates the 400,000 barrel per day (bpd) Vadinar refinery in the western Indian state of Gujarat, and has a fleet of around 6,500 service stations in the country.

Reuters reported last week that Nayara would find funding more difficult due to his connection to Russian entities. Read more

CARE Ratings said it would continue to monitor the situation and take rating action should the war adversely impact Nayara shareholders and the Indian company.

The rating agency, however, said Nayara is not currently affected by Western sanctions against Russia, as it buys oil from producers in the Middle East, Egypt and Latin America and exports most of it. its refined fuels to the Netherlands and the Far East.

“Nevertheless, given the gravity of the war situation and the resulting global backlash through sanctions against Russia and certain Russian entities, there is a great deal of uncertainty about the exact ramifications of the situation on the shareholders of Nayara”.

In 2020, Didier Casimiro, the former chairman of Rosneft Trading SA, had to resign from Nayara’s board of directors after being placed on a sanctions list by the United States.

($1 = 76.9130 Indian rupees)

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Reporting by Nidhi Verma; Editing by Frank Jack Daniel

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