New Delhi, Aug. 6 -- Nayara Energy, a Mumbai-based oil refiner with a stake held by Russian energy giant Rosneft PJSC, has reportedly asked the government to broker a relationship with a domestic lender such as UCO Bank.

The move comes after the company was sanctioned by the European Union (EU) in July, leading to increased caution among larger banks, sources familiar with the devekopment told Bloomberg.

According to the report, Nayara executives held talks with officials from the Indian finance ministry last week regarding the search. The refiner is searching for a local bank to finance and process payments for its crude oil imports and receive payments for its refined fuel product exports.

Privately held Nayara may find some banks re...