Russia is now offering steep discounts on liquefied natural gas (LNG) to Asian buyers, with price cuts reaching up to 40%. These shipments, coming from facilities under US sanctions, are being routed through intermediary firms in China and Russia. The move highlights Moscow’s attempt to bypass Western restrictions and maintain export volumes.
Global gas markets are already tight due to supply disruptions from Middle East conflicts and rising demand. In theory, low supply and high demand should push LNG prices higher, boosting Russia’s profits. But sanctions have complicated financing, shipping, and direct purchases, forcing Russia to cut prices heavily to attract buyers.
Europe, once Russia’s main energy market, is steadily moving away from fossil fuels and plans a full ban on Russian gas by 2027. This shift has made Asia especially South Asia a critical destination for Russian energy exports. To redirect flows, Russia must compensate buyers for risks, logistics hurdles, and compliance issues.
Discounts in the range of 30–40% are now the main tool Russia uses to secure contracts in Asia. By pivoting eastward, Moscow is reshaping its energy strategy, ensuring that despite sanctions and shrinking European demand, its LNG continues to find buyers in Asia’s growing markets.
