Indian company HMEL stops purchasing Russian oil due to US sanctions

Indian company HMEL stops purchasing Russian oil due to Trump's sanctions

Indian oil refining company HPCL-Mittal Energy Limited (HMEL) suspended purchases of Russian oil due to the introduction of of new sanctions imposed by the Donald Trump administration, the newspaper reports The Economic Times.

An enterprise with a 5% market share

HMEL is one of the key players in the Indian energy market, providing about 5% of domestic oil demand. The company operates a large oil refinery in the state of Punjab.

Representatives of the company said that the decision to temporarily suspend imports was made to comply with the new US sanctions requirements.

«We have stopped purchases to avoid the risk of violating US sanctions. The deliveries that have already arrived were made by vessels that are not under sanctions,» HMEL said.

Sanctions against the Russian energy sector

The new restrictions imposed by Washington include shipping companies, insurance companies and intermediaries, involved in the transportation of Russian oil.
This has already affected a number of Asian companies, which reduce the volume of purchases or look for alternative sources of supply.

Context.

India has been one of the largest buyers of Russian oil since the European embargo was introduced in 2022.
However, Trump's sanctions are forcing even Moscow's strategic partners be more cautious about transactions with Russian energy carriers, to avoid being subject to secondary US restrictions.