Saudi, Iraqi oil halt puts Modi govt in tight spot

(Web Desk): Due to the Modi government's poor performance and unjustified obstinacy, India is facing diplomatic isolation and economic difficulties.

According to the British news agency Reuters, Saudi Arabia’s state-owned oil company Aramco has stopped supplying crude oil to Indian company Nayara Energy Refinery. Additionally, Iraq’s state oil marketing company SOMO has also ceased selling oil to Nayara Energy.

Reuters reports that this move comes after the European Union imposed sanctions on companies supported by Russia. According to Reuters’ sources, since July, the Indian energy company Nayara has not received any oil from Saudi Arabia or Iraq.

In the month of August, Nayara Energy relied solely on Russian crude oil. Normally, the company imports around 2 million barrels of oil per month from Iraq and 1 million barrels from Saudi Arabia.

The Reuters report claims that due to EU sanctions, Nayara Energy is facing difficulties in procuring crude oil. It is worth noting that Nayara’s refinery is located in Vadinar, in the Indian state of Gujarat, and is currently operating at only 70 to 80 percent of its capacity.

Reuters attempted to get a statement from Nayara regarding the suspension of oil supplies from Saudi Arabia and Iraq, but no immediate response was given.

Meanwhile, the Russian embassy has confirmed that Nayara Energy is being supplied oil directly from Rosneft.

Experts say that Nayara is also facing issues with global shipping companies, which has forced the Indian company to rely on "dark fleet" — unregistered ships — for oil transportation.

It is worth mentioning that in July, the CEO of Nayara Energy resigned from his position. This situation has become a major challenge for India’s energy supply.