HPCL-Mittal Energy halts purchase of Russian crude

HPCL-Mittal Energy Ltd (HMEL) has suspended purchases of Russian crude oil, the company said on Tuesday, clarifying that the vessels, which delivered previous consignments, were not under international sanctions.

The private refiner, a joint venture between state-run Hindustan Petroleum Corporation Ltd (HPCL) and steel tycoon Lakshmi Mittal’s Mittal Energy Investments, said it would continue to review its position and comply with government policy and applicable laws.

HMEL, which operates a 9-million-tonne-a-year oil refinery in Bhatinda, is the first Indian firm to officially announce suspension of purchase of Russian crude after the US sanctioned two of Moscow’s biggest oil firms.

Commenting on a report, which said the refiner had received at least four crude shipments this year worth almost $280 million on sanctioned vessels, HMEL said it bought Russian oil on a delivered basis — meaning the supplier made shipping arrangements. The company said it was not aware of the specific vessels that transported the cargo from Murmansk in Russia’s far northwest, through the Atlantic Ocean and the Mediterranean Sea, but clarified that the ships, which eventually delivered the oil at Indian ports, were not under sanctions.