New Delhi. Indian state-backed refiner HPCL-Mittal Energy Ltd (HMEL) said on Tuesday it has suspended purchases of Russian crude oil following US President Donald Trump’s sanctions on two major Moscow-based oil companies.

Relations between Washington and New Delhi strained in August after President Donald Trump raised tariffs on India to 50 per cent. US officials have accused India of indirectly supporting Russia’s war in Ukraine by buying oil at a discount from Moscow.

US President Donald Trump has said that Indian Prime Minister Narendra Modi has agreed to reduce Russian oil imports under the terms of a potential US trade deal. However, the Indian government has not confirmed this claim.

HMEL, a joint venture between steel entrepreneur Laxmi Niwas Mittal and state-owned Hindustan Petroleum Corporation Ltd (HPCL), said in a recent statement, “It has been decided to temporarily suspend further purchase of Russian crude oil.” The company said the decision came after the United States, the European Union (EU) and the United Kingdom announced new restrictions on the import of oil from Russia.

“HMEL’s business activities are fully consistent with Government of India policies and national energy security. Meanwhile, Reliance Industries, another major buyer of Russian oil in India, said it was evaluating the impact of the latest sanctions imposed by Washington and the EU. A company spokesperson said, “We will fully comply with the EU Guidelines on the Import of Refined Petroleum Products into Europe and the guidelines of the Government of India.” ’

The EU has announced a complete ban on liquefied natural gas (LNG) imports from Russia by the end of 2026. Reliance, through its “tested and diversified crude oil sourcing strategy”, has expressed confidence in meeting the needs of both domestic and export markets and stabilising refinery operations.

According to a research report published by the London-based Financial Times on Wednesday, HMEL had in the past received shipments of Russian oil, some of which were later listed on sanctions lists by the US and the EU. But the company clarified that it did not charter the ships themselves and had limited visibility into the entire shipping chain.

HMEL has further clarified that ships delivering crude oil to India were not subject to US restrictions at the time of delivery. ’

India, one of the world’s largest oil importers, gets more than 85 percent of its oil needs from foreign sources. Traditionally reliant on Middle Eastern producers, India has been buying crude oil available at a discount from Moscow since 2022 amid sanctions imposed on Russia by Western countries.