New delhi: Indian state-backed refinery HPCL-Mittal Energy Limited (HMEL) announced its decision to stop purchasing Russian oil following the imposition of a 50% tariff on India by the United States over the issue last month.

According to Anadolu Agency, HMEL, a joint venture between the privately owned Mittal group and the state-run Hindustan Petroleum Corporation Ltd., issued a statement on Wednesday confirming the suspension of further purchases of Russian crude oil due to the sanctions. The decision was influenced by recent announcements of new restrictions on crude oil imports from Russia by the United States, European Union, and United Kingdom. The company assured that it would adhere to these restrictions while awaiting the receipt of any outstanding orders.

The refinery, located in Bhatinda, Punjab, emphasized its commitment to complying with government policy and regulations, stating that all transactions and acceptance of shipping deliveries are subject to rigorous due diligence and compliance procedures. HMEL highlighted that all oil cargoes supplied to the company are on a "delivered-at-port basis," ensuring transparency and adherence to international regulations.

The US had enforced a 50% tariff on Indian imports, citing India's purchase of Russian oil amidst the ongoing conflict in Ukraine. US President Donald Trump claimed that Indian Prime Minister Narendra Modi had assured him that India would cease purchases of Russian crude.

Despite the halt in purchases by HMEL, Russian Energy Minister Sergey Tsivilev noted that India remains a significant market for Russian oil exports, with supplies remaining robust this year. Russian Deputy Foreign Minister Andrey Rudenko also confirmed on October 20 that shipments of oil to India were continuing, highlighting the ongoing trade dynamics between the two nations.