Steel tycoon Mittal's part-owned Indian refiner stops buying Russian oil

Refining company HPCL-Mittal Energy said on Wednesday it has stopped purchasing Russian oil, shortly after the Financial Times reported the company bought Russian oil transported on blacklisted ships.

Last week, the US and Europe imposed a raft of fresh sanctions on Russian oil, with Washington targeting the country's top oil producers Lukoil and Rosneft. This has prompted Indian refiners to pause buying Russian oil as they await clarity.

The company said in the statement, "HMEL had already taken the decision to suspend further purchases of Russian crude upon recent announcements of new restrictions on imports of crude oil from Russia by the United States, European Union and United Kingdom, pending receipt of any outstanding orders."

India has become the biggest buyer of seaborne Russian oil sold at a discount after Western nations shunned purchases and imposed sanctions on Moscow for its 2022 invasion of Ukraine.

The Financial Times report said it was unclear whether the refiner, which is partly owned by steel tycoon Lakshmi Niwas Mittal, was aware of the vessels being used.

HMEL said the cargo was sold to the company on a delivered basis, meaning it would not be aware of the specific ships used for transporting the crude, nor any actions by those ships to obscure their location.

It added the ship that delivered crude to its port was not under sanctions at the time of delivery.

The company, which operates a 2,26,000-barrels-per-day refinery in the northern state of Punjab, however said it will review its position and comply with Indian government policy and laws.