Consultant picture | Picture supplied by: Reuters
India has rejected Russia’s supply to promote liquefied pure gasoline, which is topic to U.S. sanctions, regardless of shortages attributable to tensions within the Center East, two sources with direct data of the matter mentioned, with tankers certain for India remaining stalled as talks over allowed cargo proceed.
The stance highlights the fragile steadiness the world’s third-largest oil importer and client is making an attempt to strike between securing power provides and avoiding U.S.-sanctioned LNG cargoes, that are tougher to hide and carry larger compliance dangers. It additionally highlights the boundaries of Moscow’s capacity to divert LNG exports to new markets.
Regardless of itemizing India as a vacation spot in mid-April, a U.S.-sanctioned LNG cargo from Russia’s Portovaya plant within the Baltic Sea has been unable to land attributable to India’s reluctance, one of many sources mentioned. The vessel was being tracked regardless of documentation suggesting the cargo was of non-Russian origin, the official added.
Reuters reported in mid-April, citing LSEG transport information, that the 1,38,200 cubic meter tanker Kunpeng was on its solution to the Dahej LNG import terminal in western India. In accordance with LSEG, the ship is at the moment close to Singapore waters and has not broadcast its vacation spot.
India, the biggest purchaser of Russian offshore crude oil, knowledgeable Russia’s Deputy Vitality Minister Pavel Sorokin of its choice to not purchase the sanctioned LNG throughout a go to to Russia on April 30 when he met with Indian officers, together with Petroleum and Pure Gasoline Minister Hardeep Singh Puri, one of many sources mentioned. The assembly is the second in latest months, and Sorokin might return in June for additional talks, the sources mentioned.
India’s Ministry of Oil and Gasoline and the Russian Embassy in Delhi didn’t reply to requests for remark.
Russia desirous to promote, Indian firms cautious
In the meantime, India’s purchases of Russian crude oil proceed unabated, helped by a short lived waiver of US sanctions put in place to assist international locations take care of the power disaster brought on by the US-Israel struggle in opposition to Iran that started on February 28.
Arctic LNG 2 is one other Russian export plant that’s topic to US sanctions. The US authorities tightened sanctions on LNG crops in early 2025 over Russia’s struggle with Ukraine.
Whereas crude oil cargoes may be hidden by ship-to-ship transfers, LNG shipments are far more troublesome to cover from satellite tv for pc monitoring, one of many individuals mentioned.
India is open to purchasing licensed LNG from Russia, however most of that quantity is outsourced to Europe, the individuals mentioned. China stays a serious purchaser of sanctioned and unauthorized Russian LNG, the particular person mentioned.
The Russian authorities can also be searching for long-term contracts to produce India with LNG and fertilizers similar to potash, phosphorus and urea, the official added.
Earlier than the Iran battle disrupted transport by the Strait of Hormuz, India met half of its gasoline consumption by imports, about 60% of which went by the waterway. Greater than half of the oil provide got here the identical means.
Indian Prime Minister Narendra Modi on Sunday (Could 10, 2026) urged individuals to preserve gasoline and overseas alternate by working from residence, limiting worldwide journey and decreasing imports of gold and edible oil.
