Oslo-listed tanker owner Hafnia has denied any wrongdoing over shipments of fuel from Vadinar in India as a probe begins in Denmark.
A report by Danwatch and Ekstra Bladet claimed the BW Group company carried refined products with an estimated value of up to $293m from the refinery there, which it alleges has connections with sanctioned Russian entities.
The Danish Business Authority (DBA) told TradeWinds: “We can confirm that the DBA, as part of our general monitoring activities, is examining, among other things, Hafnia Tankers’ measures regarding compliance with the EU’s sanctions against Russia.”
Hafnia confirmed to TradeWinds it had now received “a line of enquiry” from the agency.
“We are in close cooperation with them to clear misunderstandings arising from media sources once and for all in confirming that Hafnia operates in full compliance with the law and that our trade with oil products from Vadinar in India is legitimate,” a spokeswoman said.
The Vadinar refinery is owned and operated by Nayara Energy, in which sanctioned Russian producer Rosneft owns a 49.13% stake.
It is India’s second largest single-location refinery, with an annual capacity of 405,000 barrels per day.
Five Hafnia tankers are alleged to have called there in recent months.
Shipments have been transported to Denmark, the UK, Tanzania and the United Arab Emirates, the report claimed.
Hafnia emphasised that as a publicly listed company in Norway, and soon in the US, it strictly adheres to some of the world’s strongest transparency laws.
Charter clauses
“Hafnia complies with all relevant laws and regulations and maintains robust controls and protocols to prevent sanctions violations. This includes sanction clauses in all charters mandating compliance with EU, US and UN laws,” the company added.
Hafnia explained that charter agreements with clients are carefully designed to include strict sanction clauses.
“These clauses ensure that we do not engage in any activities that violate international sanctions,” the spokeswoman said.
Nayara Energy is not a sanctioned entity, Hafnia added.
“Additionally, our agreements are primarily with our customers [the charterers], not with the loading or discharging terminal or refinery. Our customer, a well-known charterer, has been screened and is not subject to the sanction list,” the spokeswoman continued.
The ships have been loading jet fuel in Vadinar.
The cargoes are of Indian origin, Hafnia said, “as per current sanction laws definition”.
The company argued this has been clarified by the EU in its sanctions guidelines.
“It is important to note that the crude oil at the Vadinar refinery comes from multiple countries before it is being refined. The jet fuel is thereby classified as having Indian origin when it undergoes that level of refinement,” the spokeswoman added.
“We understand there are individuals and organisations that consider these sanction laws to not be enough morally — to which we have encouraged them to engage directly with policymakers and legislators,” she said.
