Steel magnate Lakshmi Mittal’s Indian energy joint venture has reportedly purchased Russian oil transported on sanctioned vessels. This is according to a Financial Times investigation using satellite imagery, shipping data, and customs records.
The Guru Gobind Singh Refinery in Punjab—operated by HPCL-Mittal Energy Limited (HMEL), co-owned by Mittal’s group and Hindustan Petroleum Corporation Limited—received at least four crude shipments worth nearly $280 million this year. These shipments were carried from Russia on US-sanctioned tankers. This occurred between July and September.
Concealed Shipping Practices
The oil was initially loaded at Murmansk, Russia, and transported to the Gulf of Oman. There, the cargo was transferred at sea to the Samadha, a tanker not sanctioned by the US but blacklisted by the EU.
Satellite and transponder data show that the Samadha engaged in ship-to-ship (STS) transfers with four sanctioned vessels — Belgorod, Danshui, Dignity, and Primorye. The tankers used deceptive tactics, including turning off tracking systems or broadcasting false locations. Such measures concealed their movements during these operations.
Links to Sanctioned Trade
Customs filings from HMEL to Indian authorities identified the Samadha as the carrier for crude purchased from Varda LLC. This St. Petersburg-based supplier shipped oil valued at $277 million. It contained two grades of Arctic oil — Novy Port and Arco — both linked to Russia’s Arctic oil industry. This industry has faced new US sanctions since January.
Broader Context and Reactions
The revelations come amid increased US pressure on India to curb purchases of Russian oil. Washington recently imposed new sanctions on Rosneft and Lukoil, Russia’s top oil producers, to tighten the squeeze on Moscow’s wartime revenues.
India, now one of Russia’s largest crude buyers, has been importing around 1.7 million barrels per day. This is due to benefiting from discounted prices as Western nations reduce their dependence on Russian energy.
Former US trade official Emily Kilcrease cautioned that companies dealing with such shipments risk exposure to sanctions: “If I were advising the buyer, I’d want to ensure full visibility across the transport chain to avoid being just one or two steps away from sanctioned activity.”
