India turns down Russia's sanctioned LNG despite supply concerns driven by Middle East tensions

India has reportedly turned down Russia’s offer to sell liquefied natural gas (LNG) cargoes that are under US sanctions, despite rising energy concerns linked to tensions in the Middle East.The decision has left at least one Russia-linked LNG shipment stranded near Singapore while discussions continue over what supplies India can legally purchase.According to a Reuters report, India conveyed its position during Russian deputy energy minister Pavel Sorokin’s visit to New Delhi on April 30, where he held talks with petroleum and natural gas minister Hardeep Singh Puri and other officials.Sorokin may return to India in June for further discussions, one source said, as cited by Reuters.The move likely reflects New Delhi’s attempt to balance its growing energy needs with compliance risks tied to sanctioned LNG cargoes.India remains one of the largest buyers of Russian crude oil, but LNG shipments are considered far more difficult to mask from global tracking systems.A cargo from Russia’s Portovaya LNG plant in the Baltic Sea, which is under US sanctions, has been unable to discharge after India declined to accept it, sources familiar with the matter said.The 138,200-cubic-metre tanker Kunpeng had earlier signalled Dahej LNG terminal in Gujarat as its destination in mid-April, according to LSEG shipping data.However, the vessel is currently near Singaporean waters without broadcasting a destination.One source told Reuters that although documentation suggested the cargo was non-Russian, the shipment was still tracked and identified, making it difficult to proceed unnoticed.India’s crude oil imports from Russia have continued largely uninterrupted, helped by a temporary waiver on US sanctions introduced amid the energy disruption caused by the US-Israeli war on Iran, which began on February 28.However, LNG cargoes pose a bigger compliance challenge because they are easier to monitor through satellite tracking systems. Crude shipments, by contrast, can sometimes be obscured through ship-to-ship transfers at sea.Russia’s Arctic LNG 2 project is also under US sanctions, with Washington tightening restrictions on Russian LNG exports earlier this year over Moscow’s war in Ukraine.Sources cited by Reuters further said that India remains willing to buy Russian LNG that is not under sanctions, but much of those volumes are already tied up in long-term contracts with European buyers.China, meanwhile, continues to purchase both sanctioned and unsanctioned Russian LNG, according to the report.Russia is also seeking long-term agreements with India for LNG supplies and fertiliser exports, including potash, phosphorus and urea.Before the Iran conflict disrupted shipping through the Strait of Hormuz, India imported nearly half of its gas needs, with around 60% of those supplies passing through the key maritime route.More than half of India’s crude imports also moved through the Strait.Amid concerns over energy supplies and foreign exchange outflows, Prime Minister Narendra Modi on Sunday also urged citizens to conserve fuel and reduce unnecessary imports by working from home where possible, limiting foreign travel and cutting purchases of gold and edible oil.