India has reportedly refused an offer from Russia to purchase liquefied natural Gas (LNG) cargoes that are currently under US sanctions, according to a Reuters
report citing two sources familiar with the matter. The decision comes at a time when geopolitical tensions in the Middle East are straining global energy markets and increasing pressure on fuel-importing nations. The development highlights India’s cautious approach as it attempts to secure sufficient energy supplies without risking exposure to sanctioned trade routes. While India remains heavily dependent on imported energy, officials appear wary of handling LNG shipments that could attract regulatory scrutiny from Washington, the report said. One cargo originating from Russia’s Portovaya LNG facility in the Baltic Sea has become stranded as negotiations continue over what shipments India can legally accept. The vessel had earlier indicated India as its destination but has since remained without a declared endpoint near Singaporean waters, according to shipping data states the Reuters report. According to one of the sources in the report, Indian officials communicated their unwillingness to purchase sanctioned LNG directly to Russia’s Deputy Energy Minister Pavel Sorokin during his April 30 visit to India. Sorokin reportedly met Petroleum and Natural Gas Minister Hardeep Singh Puri during the trip, marking the second round of talks between the two sides within two months. India remains open to purchasing Russian LNG that is not restricted under sanctions, though most of those supplies are already tied to European buyers. China, meanwhile, continues to import both sanctioned and non-sanctioned Russian LNG volumes. Moscow is also pursuing broader long-term trade arrangements with India, including LNG supply agreements and exports of fertilisers such as potash, phosphorus and urea. Middle East Tensions Add Pressure On India’s Energy Needs Before the Iran conflict disrupted shipping movements through the Strait of Hormuz, India was importing nearly half of its natural gas requirements, with around 60 per cent of those supplies moving through the crucial waterway. More than half of India’s crude oil imports also passed through the same route. Against this backdrop, Prime Minister Narendra Modi recently urged citizens to reduce fuel consumption and conserve foreign exchange. He encouraged people to work from home where possible, cut down on foreign travel and reduce imports of non-essential items such as gold and edible oils.
