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.

Next Story
Infrastructure Energy

Rajesh Power Secures 65 MW BESS Project in Gujarat

Rajesh Power Services has recently secured a 65 MW / 130 MWh standalone Battery Energy Storage System (BESS) project in Gujarat, marking its entry into utility-scale energy storage. The company received a Letter of Intent from Gujarat Urja Vikas Nigam for the project, which will be developed at Virpore under a tariff-based competitive bidding mechanism supported by Viability Gap Funding through the Power System Development Fund.The project is expected to be executed within 18 months from the signing of the Battery Energy Storage Purchase Agreement. With the ability to supply 65 MW of power for..

Next Story
Infrastructure Energy

ONGC Forms JV with MOL for Ethane Shipping Operations

Oil and Natural Gas Corporation (Oil and Natural Gas Corporation) has recently entered the ethane shipping segment through joint venture agreements with M/s Mitsui O.S.K. Lines Ltd (Mitsui O.S.K. Lines), Japan. The agreements involve equity participation in two joint venture entities—Bharat Ethane One IFSC Private Limited and Bharat Ethane Two IFSC Private Limited—registered at GIFT City, Gandhinagar.Under the arrangement, ONGC will subscribe to 2,00,000 equity shares of Rs 100 each in both entities, resulting in a 50 per cent equity holding in each joint venture, with the remaining stake ..

Next Story
Infrastructure Energy

Waaree Energy Storage Raises Rs 10.03 Billio for 20 GWh Plant

Waaree Energy Storage Solutions Private, a subsidiary of Waaree Energies, has recently completed a strategic fund raise of around Rs 10.03 billion from a group of strategic investors, including family offices, high-net-worth individuals and institutional backers. The funding strengthens the company’s position in India’s rapidly expanding energy storage ecosystem.The capital raise forms part of an announced capital expenditure programme of nearly Rs 100 billion for setting up a 20 GWh advanced lithium-ion cell and battery pack manufacturing facility. The plant will manufacture high-performa..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App