Russian firm Gazprom plans LNG venture in Kakinada
New Delhi, Oct. 7 -- Gazprom, a Russian state-owned energy giant facing US sanctions, is in talks to build a 5 million tonne LNG regasification terminal at Kakinada port on India's east coast, as part of plans to invest in Indian ports and gas infrastructure.
Executives of Kakinada Seaports Ltd, Gazprom, and representatives of the Russian Federation embassy in New Delhi are expected to meet this week to discuss the modalities of the proposed $600 million investment, four people said.
"Gazprom is looking to invest in port and LNG assets in India. Currently, it is in talks to set up an LNG terminal at Kakinada port," one of them said.
"There is global interest in India's maritime space. Among them, Russian entities including Gazprom have been actively scouting for maritime and port assets in India," added an Indian government official aware of Gazprom's talks with Kakinada Seaports. All four people spoke on the condition of anonymity.
Gazprom's port infra ambitions come in the backdrop of Indian port operators including Adani Group barring vessels sanctioned by the US, the UK, and the European Union from their ports. The sanctions are related to Russia's war with Ukraine.
Gazprom's India plans may not have a major impact on India-US relations as New Delhi appears keen on big investments from Russia, said Sankalp Gurjar, assistant professor of geopolitics and geoeconomics at Gokhale Institute of Politics and Economics. He pointed out that India has revived other partnerships with Russia recently, including defence acquisition plans.
India-US relations, meanwhile, remain strained over Washington's steep tariffs on Indian goods, including an additional 25% penalty for sourcing oil from Russia, even as New Delhi is looking to strike a landmark trade deal. "India has made it clear to the US that it would not budge to diktats. In this scenario, new business tie-ups and investments can be expected by Russian companies in India," Gurjar said.
Another legal expert said the US sanctions would not have an impact on Gazprom's plans for India or pose legal hurdles for the company's Indian partners....
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