Indian State-Backed Refiner Halts Russian Oil Imports After U.S. Sanctions

Indian state-run refiner HPCL-Mittal Energy Limited (HMEL) has suspended all purchases of Russian crude oil following new U.S. sanctions imposed by President Donald Trump on Moscow’s two largest oil companies.

The decision comes amid escalating trade tensions between Washington and New Delhi, which deteriorated in August after Trump raised tariffs on Indian exports to 50 percent. U.S. officials have since accused India of “fueling Russia’s war in Ukraine” by continuing to buy Moscow’s discounted crude.

Trump also claimed that Prime Minister Narendra Modi had agreed to reduce Russian oil imports as part of a potential U.S.-India trade deal, though New Delhi has not confirmed any such agreement.

In a statement released Wednesday, HMEL, a joint venture between Hindustan Petroleum Corporation Ltd (HPCL) and billionaire Lakshmi Niwas Mittal’s Mittal Energy Investments, said it had “taken the decision to suspend further purchases of Russian crude” following “recent announcements of new restrictions on imports of crude oil from Russia” by the United States, European Union, and United Kingdom.

“HMEL’s business activity is in line with Indian government and energy security policy,” the company said.

The move follows reports by the Financial Times alleging that HMEL had previously received shipments of Russian crude transported via vessels later blacklisted under U.S. and EU sanctions. The company denied any wrongdoing, clarifying that it did not charter the vessels and that the ship used “was not under sanctions at the time of delivery.”

Meanwhile, Reliance Industries, India’s largest private refiner and main buyer of Russian oil, said it was still assessing the impact of Washington’s latest sanctions and the EU’s new restrictions — which include a complete ban on Russian liquefied natural gas (LNG) imports by the end of 2026.

“We will comply with the EU’s guidelines on the import of refined products into Europe,” a Reliance spokesperson said, adding that the company would follow any directives issued by the Indian government.

Reliance added that its “time-tested, diversified crude sourcing strategy” would ensure stable refinery operations to meet both domestic and export demand, including shipments to Europe.

India, which imports more than 85 percent of its oil, began buying discounted Russian crude in 2022 after Western sanctions restricted Moscow’s traditional export markets. The latest developments could mark a turning point in India’s balancing act between energy security needs and diplomatic pressures from the West.

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