Steel tycoon Lakshmi Mittal's energy joint venture, HPCL-Mittal Energy Ltd (HMEL), on Wednesday announced that it has suspended further purchases of Russian crude oil in view of the recent sanctions.
HMEL, an equal partnership between the Mittal Group and Hindustan Petroleum Corporation Ltd (HPCL), has become the first Indian refiner to formally declare that it will halt Russian oil imports after the United States imposed sanctions on major Russian producers.
In an official statement, the company said it had so far been purchasing Russian crude on a delivered basis, meaning the suppliers handled shipping arrangements. It added that all ships that arrived at Indian ports for such deliveries were unsanctioned.
HMEL suspends purchases of Russian crude
"HMEL has already taken the decision to suspend further purchases of Russian crude upon recent announcements of new restrictions on imports of crude oil from Russia by the United States, European Union and United Kingdom, pending receipt of any outstanding orders," it added.
The firm, which owns and operates an oil refinery at Bhatinda in Punjab, said it has always acted in full compliance with government policy and regulations. HMEL's business activity is in line with the Indian government and its energy security policy.
"All transactions and acceptances of shipping deliveries by HMEL are subject to due diligence and compliance procedures. This includes counterparty KYC, sanctions screening, vessel history and prior port-clearance," it said.
It went on to state that all oil cargoes supplied to the company were on a "delivered-at-port basis".
"This means the company will not be aware of the details of other ships that crude may have been transported on, nor any attempts by those ships to conceal their position to pick up crude from sanctioned vessels," it said.
(With PTI inputs)
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