Bloomberg: China has decided to buy Russian LNG at a big discount

The largest Chinese companies are interested in buying additional batches of liquefied natural gas (LNG) from Russia, which are now sold at a big discount. This was reported by Bloomberg on April 4.

A number of Chinese corporations are already in talks with Russia, but the Chinese have to be careful to avoid condemnation from Western countries, which are imposing whole packages of sanctions against Russia. According to the agency, energy giants Sinopec and PetroChina want to buy LNG from Russia. Traders claim that liquefied natural gas is now trading at a 10% discount, while market gas prices remain high after the start of a Russian special operation in Ukraine. All this is happening against the background of the fact that most companies around the world stop buying fuel in Russia, fearing sanctions and reputational damage. For example, many Western traders and refineries have refused to buy consignments of Russian oil because of its “toxicity.” But Chinese companies are not afraid of such risks.

Bloomberg sources in the market say that in the last few weeks, Chinese corporations have already bought several batches of Russian LNG. However, companies from China prefer to act quietly and make deals, remaining in the shadows. For example, some companies will enter into agreements through Russian legal entities that intend to act on their behalf to hide their plans from foreign governments and prevent negative influence from outside. In addition, Chinese importers prefer to refrain from buying LNG in large quantities in order not to attract attention.

Earlier, the Italian Foreign Ministry said that the country would not veto sanctions against Russian gas. French President Emmanuel Macron said that on the issue of new restrictions on Moscow, it is necessary to “move forward” and ban Russia from supplying oil and coal to Europe. European Council President Charles Michel said new sanctions were being prepared against Russia.

On February 24, Russia launched a special military operation to demilitarize and denazify Ukraine. After that, economic sanctions were imposed on our country by a number of states, as a result of which the Russian Federation topped the ranking of countries by the number of restrictions imposed against it, surpassing even the DPRK. Russian President Vladimir Putin noted that Russia’s policy of containment and weakening is a long-term strategy of the West, and the sanctions have dealt a serious blow to the entire world economy, aimed at worsening the lives of millions of people around the world.

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