Indian state-backed refiner, HPCL-Mittal Energy Limited (HMEL), has announced the suspension of its purchases of Russian crude oil after U.S. President Donald Trump imposed sanctions on Moscow’s two largest oil companies.
The development marks a new strain in U.S.-India relations, which have soured since August when Washington raised tariffs on Indian goods to 50 percent.
American officials have accused India of indirectly supporting Russia’s war efforts in Ukraine by continuing to import discounted Russian oil.
President Trump recently claimed that Indian Prime Minister Narendra Modi had agreed to reduce Russian oil imports as part of a potential U.S. trade deal—an assertion that New Delhi has yet to confirm.
In a statement released on Wednesday, HMEL said the decision to halt Russian crude purchases followed “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 the Indian government and its energy security policy,” the company said.
HMEL, a joint venture between billionaire Lakshmi Niwas Mittal and state-run Hindustan Petroleum Corporation Limited (HPCL), has been one of India’s key buyers of Russian oil since 2022, when Western sanctions pushed Moscow to offer crude at discounted rates.
Meanwhile, Reliance Industries, India’s largest private refiner and a major importer of Russian oil, said last week it was assessing the implications of the U.S. and EU sanctions. “We will comply with the EU’s guidelines on the import of refined products into Europe, as well as any directives from Indian authorities,” a company spokesperson said.
The EU’s latest sanctions package includes a total ban on Russian liquefied natural gas (LNG) imports by 2026.
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Reliance expressed confidence that its “diversified crude sourcing strategy” would safeguard refinery operations to meet both domestic and export demands.
A recent Financial Times investigation revealed that HMEL had received several shipments of Russian oil carried by vessels later blacklisted under U.S. and EU sanctions.
The company maintained that it did not charter those vessels and that the ship involved “was not under sanctions at the time of delivery.”
India, which imports more than 85 percent of its crude oil, has traditionally relied on the Middle East for supplies but shifted towards Russian crude in recent years due to attractive pricing amid global restrictions on Moscow’s exports.