Beijing Becomes Lifeline for Sanctioned Russian Gas Exports

China has become the crucial link in Russia's sanctioned liquefied natural gas (LNG) exports, receiving more than 40 cargoes from Russian LNG projects under US sanctions between August 2025 and June 2026. The southern Chinese port of Beihai received these shipments at discounted prices, reportedly 30-40% below prevailing Asian spot prices.

The emergence of a sanctions-resistant LNG trading system is evident in the movement of sanctioned LNG out of Russia and its reception in China. To achieve this, Russia developed a maritime logistics chain, including floating storage units, dark ship-to-ship transfers, and a growing shadow fleet. However, this alone was not enough.

Without receiving terminals, the cargoes had nowhere to go until China provided that missing link. The Beihai terminal stopped importing LNG from other suppliers before accepting Russian deliveries, effectively segregating them from the rest of China's LNG import network and limiting exposure to other terminals and suppliers. The newly built Longkou terminal is expected to begin receiving similar cargoes later this year.