Lakshmi Mittal’s energy venture buys Russian oil shipped via US-blacklisted vessels: Report

Economic Times
Economic Times
2M ago
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Lakshmi Mittal's energy joint venture purchased Russian oil transported on U.S.-blacklisted vessels, raising concerns over compliance with sanctions. This matters as it highlights the ongoing complexities of global oil trade amid geopolitical tensions.
Lakshmi Mittal’s energy venture buys Russian oil shipped via US-blacklisted vessels: Report
A What happened
According to a Financial Times investigation, Lakshmi Mittal's energy joint venture has purchased Russian oil transported on U.S.-blacklisted vessels. The Guru Gobind Singh Refinery in Bathinda, Punjab, received at least four shipments valued at approximately $280 million this year. These shipments were transported from Russia's Arctic port of Murmansk to the Gulf of Oman, utilizing vessels that employed deceptive practices to conceal their identities. The U.S. has been increasing pressure on Indian companies to refrain from purchasing Russian oil, especially following sanctions imposed on major Russian oil producers. This situation underscores the complexities of the global oil market, particularly as India has become a significant importer of Russian crude since the onset of the Ukraine conflict.
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Key insights

  • 1

    Sanctions Evasion Tactics: Vessels used deceptive practices to hide their identities.

  • 2

    Impact on Global Oil Trade: India's role as a major importer of Russian oil complicates sanctions.

  • 3

    Geopolitical Tensions: The situation reflects ongoing geopolitical conflicts affecting energy markets.

Takeaways

The acquisition of Russian oil by Mittal's venture through sanctioned vessels raises significant questions about compliance with international laws and the ethical implications of such transactions in the context of global sanctions.

Topics

Business & Markets Economy World & Politics International Affairs Climate & Environment Energy