India Declines Sanctioned Russian LNG Amid US Pressure & Middle East Energy Crisis: Report

India has reportedly refused to purchase liquefied natural gas (LNG) cargoes from Russia that are currently under United States sanctions, despite mounting concerns over energy supplies due to escalating tensions in the Middle East.

According to a Reuters report quoting sources, Indian officials conveyed the decision during Russian Deputy Energy Minister Pavel Sorokin’s visit to New Delhi on April 30. Sorokin reportedly held meetings with senior Indian officials, including Union Petroleum and Natural Gas Minister Hardeep Singh Puri, to discuss energy cooperation and future supply arrangements between the two countries.

Russian LNG Tanker Stranded In Sea After Latest Development

The development has left a Russian LNG cargo stranded at sea after India declined to accept the shipment. The tanker, identified as Kunpeng, had earlier indicated Gujarat’s Dahej LNG terminal as its destination while transporting cargo from Russia’s Portovaya LNG plant in the Baltic Sea, which is under US sanctions. However, shipping data now shows the vessel near Singaporean waters without any declared destination.

India’s decision reflects the complex balancing act it faces between ensuring energy security and avoiding exposure to secondary sanctions imposed by the United States. While India has continued importing large quantities of discounted Russian crude oil, LNG shipments are considered far more difficult to mask due to strict international monitoring and satellite tracking systems.

India To Buy LNG That's Not Under Sanctions

India reportedly remains open to buying Russian LNG cargoes that are not under sanctions. However, a large portion of Russia’s authorised LNG supplies is already committed to European markets under existing long-term agreements.

The issue comes at a time when India is facing growing energy concerns due to instability in the Middle East. Before the recent conflict involving Iran disrupted shipping routes through the Strait of Hormuz, India depended heavily on imports for nearly half of its natural gas consumption. Around 60 per cent of those gas imports passed through the critical maritime route.

The United States had tightened sanctions on Russian LNG projects, including Portovaya and Arctic LNG 2, earlier this year over Moscow’s ongoing war in Ukraine. According to the report citing experts, unlike crude oil cargoes, which can sometimes be rerouted or transferred between ships to conceal origins, LNG shipments remain easier to trace and monitor globally.

Despite India’s refusal to buy sanctioned LNG cargoes, discussions between Moscow and New Delhi on broader energy cooperation are expected to continue. Russia is reportedly seeking long-term deals to supply India with LNG as well as fertilisers, including potash, phosphorus and urea.

Meanwhile, Prime Minister Narendra Modi recently urged citizens to conserve fuel and foreign exchange amid global uncertainty by reducing unnecessary imports, limiting foreign travel and adopting fuel-saving practices wherever possible.