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US LNG Exports and Trade Sanctions

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US LNG Exports and Trade Sanctions

Introduction

India has strategic ties with both Iran and Russia. These relationships have significant geopolitical, economic and security implications for India. However, both countries have been subject to increasing trade and economic sanctions imposed by the United States of America.

India has substantial strategic interests in Iran, including investments in the Chabahar Port project and long-standing crude oil import arrangements. Similarly, India has maintained a strong defense relationship with Russia and remains one of the major purchasers of Russian defense equipment.

Recent reports suggest that the United States may consider imposing secondary sanctions on India, primarily aimed at discouraging defense-related transactions with Russia. At the same time, India has entered into several long-term agreements for importing Liquefied Natural Gas (LNG) from the United States.

While the exact implications of such sanctions remain uncertain, the possibility of future restrictions presents important commercial and legal considerations for India’s energy sector. This paper examines whether LNG imports from the United States could be affected if secondary sanctions are imposed on India.

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