India has declined Russia's offer to supply liquefied natural gas (LNG) that is subject to United States sanctions, according to Reuters. The decision comes despite a shortfall in energy supplies caused by ongoing tensions in the Middle East.
An LNG cargo vessel that was expected to unload in India remains stranded. As a result, an LNG shipment that was expected to unload in India remains stranded after New Delhi reportedly rejected the Russian offer.
The Reuters report suggests the refusal has resulted in at least one Russian gas shipment becoming stranded at sea.
The rejected shipment originated from Russia's US-sanctioned Portovaya LNG plant in the Baltic Sea. The vessel had indicated India as its destination in mid-April but has since remained without a confirmed port for unloading, according to shipping data.
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Uncertainty surrounds the status of the LNG tanker Kunpeng after the vessel reportedly abandoned its course for India, Reuters added. In mid-April, shipping data from LSEG indicated that the 138,200-cubic-meter vessel was destined for the Dahej LNG import terminal in western India.
However, the latest tracking data shows the tanker currently positioned near Singaporean waters with no broadcast destination.
The move reflects India's effort to balance its energy security needs with compliance risks linked to Western sanctions, particularly on Russian LNG, which is harder to trace compared to crude oil. It also highlights limitations in Russia's ability to redirect sanctioned LNG exports to new markets.
Indian officials had communicated their position during a meeting with Russia's Deputy Energy Minister Pavel Sorokin on April 30. Discussions included India's preference to avoid sanctioned cargoes while remaining open to non-sanctioned LNG supplies.
India, the world's largest importer of Russian seaborne crude oil, continues to purchase Russian oil under limited circumstances, supported by temporary U.S. waivers linked to global energy disruptions. However, LNG import channels remain suspended as authorities struggle with stricter compliance mandates and persistent tracking difficulties.
Russia, meanwhile, continues to seek alternative long-term energy deals with India, including LNG and fertilizer exports, as it adapts to Western sanctions affecting its energy sector.
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