India has rejected a Russian offer to sell it liquefied natural gas under U.S. sanctions, despite shortages caused by tensions in the Middle East, two sources with direct knowledge of the matter said. The tanker bound for India has remained in limbo as negotiations over the permitted cargo continue.
VIDEO OF THE DAY
The stance underscores the delicate balance that the world’s third-largest oil importer and consumer is seeking to strike between securing energy supplies and avoiding shipments that the U.S. has sanctioned. The latter are harder to disguise and pose a greater compliance risk. It also underscores Moscow’s limitations on reorienting its LNG exports to new markets.
India's reluctance prevented a ship carrying gas from Russia's Portova plant in the Baltic Sea, which is under U.S. sanctions, from unloading, despite India being listed as a destination in mid-April, one of the sources said. The ship was being tracked despite documents showing the cargo was not Russian, the source added.
In mid-April, Reuters reported, citing LSEG shipping data, that the 138,200 cubic meter tanker Kunpeng was heading to the Dahej LNG import terminal in western India. The vessel is now near Singapore waters and its destination is not known, Reuters writes.
ADVERTISING
India, the largest buyer of Russian offshore crude, conveyed its decision not to buy the sanctioned gas to Russian Deputy Energy Minister Pavel Sorokin during his visit on April 30, when he met with Indian officials. It was their second meeting, and Sorokin may return in June for further talks, the source said.
Meanwhile, India's purchases of Russian crude oil continue unabated, aided by the temporary lifting of US sanctions imposed to help countries cope with the energy crisis resulting from the US-Israeli war with Iran.
India is open to buying authorized Russian LNG, but most of that volume is destined for Europe, the source said. It noted that China remains the main buyer of both authorized and unauthorized Russian LNG. Moscow is also looking to sign long-term deals to supply India with liquefied natural gas and fertilizers such as potash, phosphorus and urea, the source added.
ADVERTISING
Indian Prime Minister Narendra Modi recently urged people to save fuel and foreign exchange by working from home, limiting foreign travel and reducing imports of gold and cooking oil.
Previously, “FACTS” reported that the world is on the verge of a major economic crisis. The expert named 10 factors that scream about this.