HMEL Becomes First Indian Company to Halt Russian Oil Purchases After US Sanctions

New Delhi, 30th October 2025: In a significant development following fresh US and European sanctions on Russian oil producers, HPCL-Mittal Energy Limited (HMEL) — a joint venture between Hindustan Petroleum Corporation Limited (HPCL) and the Mittal Group — has announced that it will stop purchasing crude oil from Russia.

HMEL is the first Indian company to officially confirm a halt to Russian crude imports after the latest round of sanctions imposed by the United States, European Union, and the United Kingdom earlier this month.

In an official statement issued on Wednesday, HMEL said it had so far been importing Russian oil on a supply-side arrangement, meaning the supplier handled transportation logistics. “Following the announcement of new sanctions on crude oil imports from Russia by the US, EU, and UK, HMEL has decided to stop further purchases of crude oil from Russia,” the company said.

The Bathinda-based refinery operator emphasized that it has always complied with Indian government policies and that all its business activities are aligned with the country’s energy security framework.
Meanwhile, Indian Oil Corporation (IOC) has also stated that it will adhere to all international sanctions applicable to crude oil purchases.

Russian oil accounted for 21 percent of IOC’s total crude imports between April and September 2025. However, the company has since scaled back, with its subsidiary Chennai Petroleum Corporation Limited (CPCL) cutting Russian oil imports by half this month.

The move comes after the US government imposed sanctions on major Russian energy firms Rosneft and Lukoil on October 22, followed by the European Union’s decision to ban all transactions with these companies a day later.

The combined impact of these sanctions is expected to reshape India’s crude sourcing strategy, which had increasingly relied on discounted Russian oil since 2022.