Indian company HMEL stops import of Russian oil: Hindustan Petroleum has 49% stake in it; Impact of international sanctions

After international sanctions, Indian companies have started stopping the import of crude oil from Russia. HMEL (Hindustan Mittal Energy Limited), a joint venture between Lakshmi Mittal and Hindustan Petroleum Corporation Limited (HPCL), said on Wednesday that it has stopped importing crude oil from Russia.

The company has taken this decision after new restrictions by western countries (America, EU, UK) on Russia’s energy trade. HMEL told The Economic Times that the move was taken due to new restrictions imposed by the US, European Union and United Kingdom on crude oil imports from Russia.

This move of HMEL has come at a time when on October 22, Trump has imposed new sanctions on Russia’s major oil producing companies Rosneft and Lukoil. Trump has taken this step after the European Union completely banned the import of Russian LNG. Britain had also imposed sanctions on both the companies.

Government companies are also checking shipments

Government companies like Indian Oil Corporation, Bharat Petroleum, Hindustan Petroleum are also examining their business documents. They are checking the bills of shipments arriving after November 21 to ensure that there is no direct supply from Rosneft or Lukoil.

The Indian government has privately asked companies to start reducing imports of Russian oil, a person familiar with talks between the government and local refiners said.

Sanctions on Russian companies come into effect from November 21

The US Treasury has given time till November 21, 2025. During this period the companies will have to conclude transactions with Rosneft and Lukoil. Failure to comply may result in fines, blacklisting or trade restrictions. American institutions are now barred from doing any kind of business with these companies.

Prices of petrol and diesel may increase due to expensive crude oil

Russian oil was cheap, now oil has to be taken from alternative sources like the Middle East or America, which are expensive. Russian oil had a major share in India’s total imports, hence the refining cost will increase and its impact can also be seen on the prices of petrol and diesel.

India has been buying Russian oil since the Russia-Ukraine war.

Russian oil became cheaper after Russia’s attack on Ukraine in 2022. India is the world’s third-largest oil importer, and Russian oil met its needs cheaply. But now due to sanctions it may have to reduce Russian oil purchases.

Indian government data shows the country has bought discounted Russian oil worth about $140 billion through 2022. Reliance and other companies processed it into petrol and diesel and sold it in the domestic and international markets.

Trump said- India will stop buying Russian oil

Speaking to reporters at the White House on Wednesday, October 22, Trump said for the fifth time, “Buying oil is a process that is not possible to stop immediately, but by the end of the year they will reduce it to zero. I have talked to Prime Minister Modi about this.

Trump had imposed 25% extra tariff on India

Earlier in August, Trump had imposed 25% additional tariff on India for buying oil from Russia. A total of Rs 50 tariff is being imposed on India from August 27. There is a 25% reciprocal i.e. tit-for-tat tariff and a 25% penalty on purchasing oil from Russia.

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