New Delhi
State Bank of India (SBI) has stopped processing transactions of Naira Energy trade and foreign currency. The reason for this is the fear of a ban after the American tariff increased last month. The bank took this step so that it does not become a victim of the restrictions of the US and the European Union. A knowledgeable person said that this decision has been taken to ensure compliance with international rules.
Who is Naira Energy?
In August 2017, a group headed by Russian oil giant Rosneft bought a 20 million tonnes of Vadinar refinery of Essar Oil and changed its name to Naira Energy. The company imports crude oil from abroad and India has about 8% market share in a refining capacity of 256 million metric tonnes per year.
“These European sanctions imposed on July 18 proved to be the last drop. All banks with international branches and tasks have to follow government laws so that they do not come under the purview of regulatory investigation. These European sanctions and then American tariffs have made the transaction process difficult for Naira.”
Asia’s second largest refining capacity
It is Asia’s second largest refining capacity. Naira also has more than 6,500 petrol pumps across the country. Like Reliance Industries, Naira also imports crude oil from abroad, refine it in usable fuel like petrol and diesel, and sells it in Europe and Middle East markets besides India.
European sanctions increased difficulty
The company’s difficulties started in July this year when the European Union implemented its 18th ban package against Russia. It banned fuel imports from the Russian market and imposed a price cap of $ 47.6 per barrel on Russian crude oil.
