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Russia’s Gazprom defaults on

five LNG deliveries to India

IMPORTS RUSSIAN gas monopoly Gazprom has defaulted be, although it has promised to supply LNG on a
on the delivery of five LNG cargoes to India since ‘best endeavour’ basis. Meanwhile, GAIL is look-
June, according to the Press Trust of India. Gaz- ing for alternative sources of LNG in the Mid-
prom has been unable to deliver the cargoes, dle East and the US. It is also looking into legal
citing difficulty in sourcing the LNG due to recourse, but hopes to resolve the matter through
international sanctions resulting from Russia’s diplomacy, Indian media reported.
invasion of Ukraine. GAIL’s agreement calls for Gazprom to deliver
The inability to source LNG is apparently a 2mn tonnes in 2021, and increase this to 2.5mn
blowback from Russia’s own sanctions imposed tonnes during 2022. A full volume of 2.85mn
against companies and countries that have tonnes should reached in 2023 and continue for
adopted US and European sanctions against the life of the contract. Shipments during 2022
Moscow, among them the German unit of Gaz- were expected to number around 40 and reach
prom and Polish shareholders in the Yamal gas 46 during 2023.
pipeline to Europe. The Russian counter-sanc- Russia made the move to impose its own
tions cover companies that Gazprom uses to sanctions to prevent its gas reaching some West-
supply LNG to India. ern customers that had imposed sanctions.
The deliveries were scheduled to be received Moscow sanctioned 31 companies, among
by Gas Authority of India Ltd (GAIL), India’s them Gazprom Germania, Polish pipeline com-
largest gas company, which has a long-term con- pany EuRoPol Gaz and Gazprom subsidiaries
tract with Singapore-based Gazprom Marketing in Austria, Belgium, Bulgaria, Czechia, France,
and Trading Singapore to supply 2.85mn tonnes Germany, Italy, Hungary, Poland, Romania, Slo-
per year (tpy). However, Gazprom Singapore is vakia, Switzerland, UK, US and Singapore.
operated by Gazprom Germania. As such, it no India itself has refused to impose Western-led
longer has access to Russian gas. sanctions against Russia and continues to pur-
The contract stipulates that the cargoes will chase large quantities of Russian crude oil at
be fulfilled in the future, but as yet, Gazprom discounted prices, much to the chagrin of New
has not informed GAIL as to when that might Delhi’s US and European allies.™

P10 www. NEWSBASE .com Week 29 22•July•2022