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Steel tycoon Lakshmi Mittal is once again in the headlines after his energy venture bought Russian oil worth nearly $280 million, even as the United States tightened its sanctions on Moscow.
His company, HPCL-Mittal Energy Ltd (HMEL), a joint venture with Hindustan Petroleum, received at least four cargoes of Russian crude between July and September 2025. These shipments arrived at the Guru Gobind Singh Refinery in Bathinda, Punjab.
According to a Financial Times report, the oil started its journey from Murmansk, a Russian Arctic port. It was carried by ships already blacklisted by the US government. Some of these tankers reportedly turned off their tracking systems or sent fake locations to hide their route. Later, the crude was transferred to another ship, Samadha, which was not under US sanctions but was on the EU blacklist, before reaching India.
HMEL said it bought the oil under a delivered deal, meaning the supplier handled the shipping. The company also stated that it followed all government rules, including sanctions checks and due diligence. However, experts question whether the firm knew that the oil was traveling on banned vessels.
After the reports surfaced, HMEL announced it had stopped buying Russian oil until it gets more clarity from the authorities. This makes it the first Indian refinery to pause Russian imports after the latest round of US sanctions.
The US recently increased pressure on Russia by targeting Rosneft and Lukoil, the country’s top two oil producers. Washington says the move is aimed at cutting Moscow’s oil income, which funds the ongoing Ukraine war.
India has become one of the largest buyers of Russian oil since 2022, taking in around 1.7 million barrels a day this year. The new sanctions are now putting Indian refiners under pressure to be more cautious about their supply chains.
The case has created a new challenge for Mittal’s energy venture. It highlights how tough it is for global companies to trade oil safely in today’s sanction-filled market.
The episode also shows how India’s energy trade is walking a fine line between cheap oil deals and global political risks. For Mittal and HMEL, this oil deal may serve as a lesson in how even a single wrong shipment can attract worldwide attention.
