An Indian state-backed refinery, HPCL-Mittal Energy Limited (HMEL), has stopped buying Russian crude oil after the United States imposed sanctions on Moscow’s two largest oil companies.
In a statement on Wednesday, HMEL a joint venture between billionaire Lakshmi Niwas Mittal and the state-run Hindustan Petroleum Corporation Limited (HPCL) said the decision followed new restrictions announced by the US, European Union, and United Kingdom on Russian crude imports.
“HMEL’s business activity is in line with the Indian government’s energy security policy,” the company said.
The move comes amid rising tensions between Washington and New Delhi. Relations deteriorated in August after President Donald Trump increased tariffs on Indian goods to 50 percent, accusing India of aiding Russia’s war in Ukraine by purchasing discounted Russian oil.
Trump also claimed that Prime Minister Narendra Modi had agreed to reduce Russian oil imports as part of a potential US-India trade deal, a claim that New Delhi has yet to confirm.
Meanwhile, Reliance Industries India’s largest private buyer of Russian oil said it is reviewing the implications of the new sanctions and will comply with all relevant guidelines issued by both the EU and Indian authorities.
The EU’s latest sanctions include a total ban on Russian liquefied natural gas (LNG) imports by the end of 2026. Reliance assured that its “diversified crude sourcing strategy” would sustain refinery operations for domestic and export markets, including Europe.
A recent Financial Times investigation revealed that HMEL had received several Russian crude shipments on vessels later blacklisted under Western sanctions. However, the company maintained that it did not charter the ships and that the vessel involved in its delivery was not under sanctions at the time.
India, one of the world’s largest oil importers, depends on foreign suppliers for over 85 percent of its energy needs. The country began purchasing discounted Russian crude in 2022 after Western sanctions restricted Moscow’s export options.
