Russia tries to sell sanctioned LNG to energy-dependent Asia through intermediaries - Bloomberg
Kyiv • UNN
Russia is trying to sell LNG disguised as fuel from Oman or Nigeria amid a shortage in the region. Buyers are offered fake documents and a shadow fleet.
Russia is trying to use the global natural gas deficit to lure energy-dependent South Asia into buying supplies from its US-sanctioned facilities. This is reported by Bloomberg, citing informed sources, writes UNN.
Details
According to them, last week, supplies were offered at a 40% discount to spot prices through little-known intermediary companies registered in China and Russia. The sellers stated that they could provide documents that would make it appear that the supplies did not originate from Russia, but, for example, from Oman or Nigeria.
Bloomberg News could not confirm whether these supplies were purchased.
The effective closure of the Strait of Hormuz and attacks on the world's largest LNG export facility in Qatar have cut about a fifth of global supplies, disrupting the gas market and driving up prices. Supplies from Qatar have virtually stopped, forcing buyers in Bangladesh and India to seek more expensive alternatives.
Bangladesh, which last year received 60% of its LNG from Qatar, has been forced to buy supplies on the spot market, sometimes spending approximately twice as much as under long-term contracts with the Middle Eastern country. Bangladesh and India have also been forced to cut gas supplies for fertilizer production due to reduced LNG supplies.
India is usually cautious about importing sanctioned oil and gas, and its government has previously stated that it would not accept Russian LNG from blacklisted projects. India received its first shipment of Iranian oil since 2019 after the US Treasury Department issued a general license last month that lifted restrictions.
Although Russia is gradually expanding exports from its US-sanctioned facilities — Arctic LNG 2 and Portovaya — most buyers remain cautious due to fears of potential pressure from Washington. China is currently the only country importing sanctioned Russian LNG through a network of so-called "shadow fleet."
Expanding supplies to countries outside China would help Russia diversify its customer base and increase exports from its blacklisted facilities. Arctic LNG 2 — which was designed to be Russia's largest LNG plant — began exports in 2024, but its full capacity is limited due to a lack of shipping capacity and ready buyers.