Indian state-backed refinery halts Russian oil

NEW DELHI, India (AFP) — Indian state-backed refiner HPCL-Mittal Energy has halted purchases of Russian crude after United States President Donald Trump imposed sanctions on Moscow’s two largest oil companies, the firm said.

Relations between Washington and New Delhi plummeted in August after Trump raised tariffs to 50 percent, with US officials accusing India of fueling Russia’s war in Ukraine by buying Moscow’s discounted oil.

Trump has claimed that Indian Prime Minister Narendra Modi has agreed to cut its Russian oil imports as part of a prospective US trade deal — something New Delhi has not confirmed.

HPCL-Mittal Energy Limited (HMEL), a joint venture between steel tycoon Lakshmi Niwas Mittal and state-run Hindustan Petroleum Corporation Ltd., said it had “taken the decision to suspend further purchases of Russian crude.”

The statement, issued Wednesday, said last week the decision came after “recent announcements of new restrictions on imports of crude oil from Russia” by the US, European Union (EU) and United Kingdom.

“HMEL’s business activity is in-line with Indian government and energy security policy,” the statement added.

Reliance Industries, the privately-owned main Indian buyer of Russian crude, said last week it was assessing the implications of Washington’s restrictions, as well as those imposed this week by the EU.

“We will comply with the EU’s guidelines on the import of refined products into Europe,” a spokesperson for the company said, and with any guidelines from the Indian side.