Indian State Refiners Suspend Russian Oil Purchases Amid US Sanctions

Several major Indian oil refiners, including HPCL-Mittal Energy Ltd (HMEL) and state-run companies such as Indian Oil Corp., Bharat Petroleum Corp., and Hindustan Petroleum Corp., have suspended purchases of Russian crude oil in response to recent US sanctions on major Russian energy firms. HMEL has become the first Indian company to officially announce halting Russian oil imports, citing compliance with government policies and sanctions screening procedures. Mangalore Refinery & Petroleum Ltd (MRPL) has also ceased buying Russian oil to avoid risks related to sanctions violations, reflecting a broader caution among Indian refiners amid increased scrutiny from banks and regulators. These developments mark a significant shift in India's oil import strategy, as the sanctioned Russian producers accounted for over 80% of India's Russian oil imports. Companies like Reliance Industries have shifted to alternative crude sources from the Middle East and the US, while some entities like Nayara Energy continue Russian purchases despite sanctions complexities. Indian refiners are exploring options from smaller, non-sanctioned Russian suppliers to balance compliance and energy security needs amid geopolitical uncertainties.