Nayara Energy Ltd., which runs one of India’s biggest private refineries, is facing supply pressure after Saudi Arabia and Iraq stopped shipping crude to the company in the wake of European Union sanctions.

According to industry sources, Saudi Aramco has suspended oil sales to Nayara, citing complications with payments triggered by the EU restrictions. Similarly, Iraq’s state oil marketer, SOMO, did not deliver any cargoes to the company in August.

The halt comes as Nayara, partly owned by Russia’s Rosneft, struggles with increasing scrutiny from Western nations. The refinery, located in Vadinar, Gujarat, has been a key processor of Russian crude since Moscow began redirecting oil flows toward Asia following sanctions over the war in Ukraine.

Analysts say the supply cutoff by top Middle Eastern producers could limit Nayara’s options, potentially pushing the company to lean more heavily on Russian shipments or alternative suppliers. However, with sanctions complicating financial transactions, the company may find it difficult to maintain stable imports.

Nayara has not issued a public statement on the situation, while Saudi Aramco and SOMO have also declined to comment.