+
Mittal Energy Linked to Russian Oil Shipments via Sanctioned Vessels
OIL & GAS

Mittal Energy Linked to Russian Oil Shipments via Sanctioned Vessels

Steel magnate Lakshmi Mittal’s energy joint venture in India has been found to have purchased Russian crude oil transported on sanctioned vessels, according to an analysis by the Financial Times using satellite imagery, customs data, and shipping records.

The Guru Gobind Singh Refinery in Punjab, co-owned by Mittal Energy, received at least four shipments worth nearly $280 million this year that were moved primarily on US-blacklisted tankers. These vessels transported crude from Murmansk in Russia to the Gulf of Oman between July and September, after which the final delivery into India was made by the Samadha, a tanker sanctioned by the EU but not the US.

Investigations revealed that these ships used deceptive practices to conceal their routes — such as turning off transponders or broadcasting false locations. Emily Kilcrease, a former US trade official, commented that buyers must ensure complete visibility in the transport chain to avoid proximity to sanctioned activity.

HMEL’s Response

HPCL-Mittal Energy Limited (HMEL), which owns the refinery, initially did not respond to requests for comment. Following publication, it stated that all purchases underwent due diligence and compliance procedures, including KYC checks, sanctions screening, and vessel history reviews, and that it complied with Indian regulations.

HMEL clarified that under its procurement terms, it was not aware of the details of other ships involved in the oil’s transport and any possible concealment activities. It added that it had suspended all future purchases of Russian crude following the new sanctions by the US, EU, and UK.

The company is a joint venture between Mittal Group and Hindustan Petroleum Corporation Limited (HPCL), with each holding a 49 per cent stake, while the remaining 2 per cent is owned by financial institutions.

Background and Wider Context

The revelations emerge as the US intensifies pressure on Indian buyers to halt imports of Russian crude. The recent sanctions target Rosneft and Lukoil, Russia’s largest oil producers, as part of efforts to compel Moscow to negotiate with Ukraine.

India has become one of the top importers of Russian crude since Russia’s 2022 invasion of Ukraine, buying around 1.7 million barrels per day — roughly one-third of Russia’s total seaborne exports, according to Kpler data.

Ship-to-Ship Transfers and Concealment

The Samadha repeatedly sailed between Oman and Mundra in Gujarat, appearing to shuttle crude but actually meeting sanctioned vessels offshore for ship-to-ship transfers, as confirmed by TankerTrackers, a maritime intelligence firm. Satellite images show the Samadha anchored beside the Belgorod, Danshui, Dignity, and Primorye — all sanctioned by the US.

The sanctioned ships went “dark” for several days during the transfers, switching off tracking systems before reappearing soon after. Customs filings by HMEL confirmed imports from Varda LLC, a St Petersburg-based supplier, with four shipments totalling $277 million, consisting of Arctic grades Novy Port and Arco.

Refinery Operations

The Guru Gobind Singh Refinery, located in Bathinda, Punjab, has an annual processing capacity of 11.3 million tonnes and sources crude via a 1,000-kilometre pipeline from the port of Mundra. The Samadha, since sanctioned by the UK, is registered under Erika Freight Limited, a Seychelles-based company linked to several so-called shadow fleet vessels.

Efforts to contact Varda LLC in Russia were unsuccessful, as the company has no online presence or listed contact details.

Steel magnate Lakshmi Mittal’s energy joint venture in India has been found to have purchased Russian crude oil transported on sanctioned vessels, according to an analysis by the Financial Times using satellite imagery, customs data, and shipping records. The Guru Gobind Singh Refinery in Punjab, co-owned by Mittal Energy, received at least four shipments worth nearly $280 million this year that were moved primarily on US-blacklisted tankers. These vessels transported crude from Murmansk in Russia to the Gulf of Oman between July and September, after which the final delivery into India was made by the Samadha, a tanker sanctioned by the EU but not the US. Investigations revealed that these ships used deceptive practices to conceal their routes — such as turning off transponders or broadcasting false locations. Emily Kilcrease, a former US trade official, commented that buyers must ensure complete visibility in the transport chain to avoid proximity to sanctioned activity. HMEL’s Response HPCL-Mittal Energy Limited (HMEL), which owns the refinery, initially did not respond to requests for comment. Following publication, it stated that all purchases underwent due diligence and compliance procedures, including KYC checks, sanctions screening, and vessel history reviews, and that it complied with Indian regulations. HMEL clarified that under its procurement terms, it was not aware of the details of other ships involved in the oil’s transport and any possible concealment activities. It added that it had suspended all future purchases of Russian crude following the new sanctions by the US, EU, and UK. The company is a joint venture between Mittal Group and Hindustan Petroleum Corporation Limited (HPCL), with each holding a 49 per cent stake, while the remaining 2 per cent is owned by financial institutions. Background and Wider Context The revelations emerge as the US intensifies pressure on Indian buyers to halt imports of Russian crude. The recent sanctions target Rosneft and Lukoil, Russia’s largest oil producers, as part of efforts to compel Moscow to negotiate with Ukraine. India has become one of the top importers of Russian crude since Russia’s 2022 invasion of Ukraine, buying around 1.7 million barrels per day — roughly one-third of Russia’s total seaborne exports, according to Kpler data. Ship-to-Ship Transfers and Concealment The Samadha repeatedly sailed between Oman and Mundra in Gujarat, appearing to shuttle crude but actually meeting sanctioned vessels offshore for ship-to-ship transfers, as confirmed by TankerTrackers, a maritime intelligence firm. Satellite images show the Samadha anchored beside the Belgorod, Danshui, Dignity, and Primorye — all sanctioned by the US. The sanctioned ships went “dark” for several days during the transfers, switching off tracking systems before reappearing soon after. Customs filings by HMEL confirmed imports from Varda LLC, a St Petersburg-based supplier, with four shipments totalling $277 million, consisting of Arctic grades Novy Port and Arco. Refinery Operations The Guru Gobind Singh Refinery, located in Bathinda, Punjab, has an annual processing capacity of 11.3 million tonnes and sources crude via a 1,000-kilometre pipeline from the port of Mundra. The Samadha, since sanctioned by the UK, is registered under Erika Freight Limited, a Seychelles-based company linked to several so-called shadow fleet vessels. Efforts to contact Varda LLC in Russia were unsuccessful, as the company has no online presence or listed contact details.

Related Stories

Gold Stories

Next Story
Infrastructure Transport

97 Per Cent Of Rongjeng-Mangsang-Adokgre Road Nears Completion

Deputy Chief Minister in-charge of public works Prestone Tynsong said in Shillong on 26 August that 97 per cent physical progress had been achieved on the ongoing Rongjeng-Mangsang-Adokgre road being constructed under the Non-Lapsable Central Pool of Resources (NLCPR). He noted the project was sanctioned in 2017 and that the stipulated time for completion had been 24 months from issue of the final work order. The deputy chief minister informed the assembly that the government had decided to include the remaining work under a World Bank project. In reply to a query from Rongjeng MLA Jim M Sangm..

Next Story
Infrastructure Transport

First TBM Starts Digging Five Point Three Kilometre Tunnel Under SGNP

The Goregaon-Mulund Link Road (GMLR) Phase three (B) project has reached a key milestone as the first tunnel boring machine (TBM) began excavation of the first of two tunnels beneath the Sanjay Gandhi National Park (SGNP). The machine, named Tulsi, started cutting a five point three kilometre bore that will link Dadasaheb Phalke Chitranagari in Goregaon East with Amar Nagar in Mulund West. Officials issued a statement noting the commencement of tunnelling work under the protected green belt. The twin tunnels are being constructed using mechanised tunnelling methods that aim to limit surface di..

Next Story
Infrastructure Transport

UP Approves Two Expressways And Rs 240 bn Infrastructure Push

The Uttar Pradesh Cabinet approved a series of infrastructure and industrial investment proposals totalling Rs 240 billion (Rs 240 bn), including two major expressway projects, a manufacturing and logistics cluster in Sultanpur and incentives for 11 industrial projects across the state. The decisions, taken at a meeting chaired by Chief Minister Yogi Adityanath, underline the state government’s focus on expanding road connectivity around emerging industrial hubs while attracting manufacturing investment to districts beyond major urban centres. The approvals cover both greenfield expressway c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code