India rejects sanctioned Russian LNG, tanker left without destination

India has refused to purchase Russian liquefied natural gas (LNG) that is subject to US sanctions, despite facing an energy shortage amid ongoing tensions in the Middle East, sources familiar with the negotiations told Reuters.

The decision has left a tanker carrying the sanctioned cargo without a clear destination, as stakeholders search for alternative supply arrangements that do not violate existing restrictions.

The situation underscores the complexity of India’s energy policy as one of the world’s largest oil importers, balancing domestic demand with compliance under the sanctions regime. Unlike crude oil shipments, LNG cargoes are significantly more difficult to obscure, increasing the legal and reputational risks for importers. At the same time, the case highlights Russia’s limited ability to rapidly redirect gas exports to alternative markets.

Sources said the cargo originated from Russia’s Portovaya plant in the Baltic Sea, which is included on the US sanctions list, and could not be accepted by Indian buyers. This is despite the fact that India had been listed as the final destination for the shipment as recently as April. Documentation asserting that the gas was of non-Russian origin did not alter the outcome, as the vessel remained under close monitoring.

The tanker Kunpeng, with a capacity of 138,200 cubic meters, had previously been en route to the Dahej LNG terminal but is now positioned near Singapore without an officially designated destination.

According to reports, India’s stance was conveyed to Russian Deputy Energy Minister Pavel Sorokin during his visit on April 30. Discussions were held with Indian officials, including Minister of Petroleum and Natural Gas Hardeep Singh Puri. The meeting marked the second round of talks in a short period, and both sides have not ruled out continuing the dialogue in the near future.

By Tamilla Hasanova