October 29th 2025.
New Delhi: HPCL-Mittal Energy Ltd has made the decision to temporarily stop buying Russian crude oil, the company announced on Tuesday. This decision was made in light of recent events, but it is important to note that the vessels that delivered previous shipments were not under any international sanctions.
However, the company will continue to monitor the situation and comply with government policy and applicable laws. HMEL, which is a joint venture between Hindustan Petroleum Corporation Ltd and Mittal Energy Investments, operates a large oil refinery in Bhatinda, Punjab, with a capacity of 9 million tonnes per year.
This makes HMEL the first Indian company to officially declare a suspension of purchases of Russian crude oil after the US sanctioned two of Moscow's biggest oil firms. The Financial Times had reported that HMEL had received four crude shipments worth a total of USD 280 million on sanctioned vessels this year. However, HMEL clarified that they bought Russian oil on a delivered basis, meaning that the supplier was responsible for arranging shipping.
The company stated that it was not aware of the specific vessels that transported the cargo from Murmansk in Russia to Indian ports, but they made it clear that these vessels were not under any sanctions. Despite this, HMEL had already decided to suspend further purchases of Russian crude in light of the new restrictions imposed by the US, European Union, and United Kingdom.
These recent sanctions were imposed in an effort to pressure Moscow into ending its conflict in Ukraine. It is worth noting that Russia currently supplies almost one-third of India's crude oil imports, with a daily average of 1.7 million barrels in 2025. Of this amount, approximately 1.2 million barrels were directly sourced from Rosneft and Lukoil, with private refiners like Reliance Industries Ltd and Nayara Energy making up the majority of the buyers.
According to the Financial Times, the oil was transported on US-blacklisted vessels between July and September, from the port of Murmansk to the Gulf of Oman, before being transferred to other vessels. The final delivery was made by the Samadha tanker, which was not under US sanctions at the time, although it had been blacklisted by the EU. HMEL emphasized that they had no knowledge of any attempts by the ships involved to conceal their behavior.
The company also stated that they always act in compliance with government policies and regulations, and they have strict procedures in place to ensure due diligence and compliance. This includes conducting background checks on all parties involved, screening for sanctions, and reviewing vessel history and prior port-clearances.
HMEL reiterated that they purchase crude oil on a delivered-at-port basis, meaning they are not aware of the details of any other ships that the oil may have been transported on. They also clarified that their business activity is in line with India's energy security policy, and their refined output is primarily used to meet the country's energy demands.
Other Indian refiners have also halted their orders of Russian oil following the recent sanctions. However, it is important to note that the sanctions do not prohibit the purchase of Russian crude, but rather target specific entities. This means that Indian refiners can still consider purchasing Russian crude from non-sanctioned entities, as long as they comply with the restrictions.
In a recent post-earnings analyst call, IOC Director Anuj Jain stated that they will continue to buy Russian crude as long as they are in compliance with the sanctions. He also added that it is important for the banking systems to respond appropriately to the new restrictions. Reliance Industries Ltd, which has a long-term contract with Rosneft to buy up to 500,000 barrels per day of crude, may be the first company to stop importing oil from Russia.
However, the company has stated that they will adapt their operations to comply with the new restrictions and maintain operational stability. As of now, they have not announced a complete halt in purchases. It remains to be seen how the Indian government and the banking systems will respond to the sanctions and how it will affect the country's crude oil imports.
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