India Rejects Sanctioned Russian LNG While Maintaining Crude Imports

India’s energy strategy is now a study in contrast. On April 30, officials told Russia’s Deputy Energy Minister Pavel Sorokin that any LNG cargoes subject to U.S. sanctions are off the table. The decision came during a meeting that also included Petroleum and Natural Gas Minister Hardeep Singh Puri.

The rejected cargo was aboard the 138,200‑cubic‑metre tanker *Kunpeng*, originally slated for the Dahej LNG terminal on India’s west coast. Tracking data shows the vessel now loiters near Singapore with no declared destination, underscoring the difficulty of redirecting sanctioned LNG.

In parallel, India’s crude oil purchases from Russia remain steady. A temporary U.S. waiver, introduced after the February 28 Iran‑related energy crisis, permits Indian refiners to receive Russian oil despite broader sanctions. This exemption allows the world’s third‑largest oil consumer to secure vital fuel while avoiding the higher compliance risk of sanctioned LNG, which is easier to trace via satellite.

The split approach reflects India’s need to balance two pressures: securing reliable energy supplies and adhering to U.S. sanctions that target LNG more aggressively than crude. Crude shipments can be masked through ship‑to‑ship transfers at sea, a tactic not feasible for LNG, which requires specialized infrastructure and is closely monitored.

India’s openness to “authorized” Russian LNG—volumes not under sanction—remains limited because most of that supply is already earmarked for Europe. China continues to absorb both sanctioned and non‑sanctioned Russian LNG, leaving Moscow with few alternative markets.

Moscow is still courting India for long‑term LNG and fertilizer deals, but the current impasse shows the limits of its ability to reroute sanctioned gas. For now, India’s energy policy hinges on the temporary waiver; any change in U.S. policy or the geopolitical landscape could force a reassessment.

What to watch next: The outcome of Sorokin’s potential June visit and any adjustments to the U.S. waiver will signal whether India can expand its Russian energy ties without breaching sanctions.