HMEL Halts Russian Crude Purchases Amid New Sanctions

HMEL, a joint venture of Lakshmi Mittal's group and HPCL, has suspended its purchase of Russian crude oil due to recent sanctions from the US, EU, and UK. Despite compliance with government policies, new restrictions have led the company to pause its dealings with Russian oil suppliers.

In a significant move, HMEL, the energy joint venture led by steel magnate Lakshmi Mittal, has announced the suspension of new Russian crude oil purchases. The decision follows stringent sanctions imposed by the United States, European Union, and the United Kingdom targeting Russian oil producers.

HMEL, a collaboration between the Mittal group and Hindustan Petroleum Corporation Ltd (HPCL), becomes the first Indian firm to officially halt Russian oil imports post-sanctions. Until now, HMEL procured Russian crude on a delivered basis, with shipping overseen by the supplier. Importantly, all vessels arriving for deliveries had previously complied with any imposed restrictions.

The company underscored its commitment to adhering to government policies and energy security strategies, promising that its transactions align with due diligence and compliance measures, including thorough checks on counterparties, vessel history, and sanctions screening.

(With inputs from agencies.)