Russian LNG Tankers Increase Sanctioned Shipments to China Amid Political Summit
Russian LNG Tankers Increase Sanctioned Shipments to China Amid Political Summit

Russian LNG Tankers Increase Sanctioned Shipments to China Amid Political Summit

News summary

China is significantly increasing its imports of liquefied natural gas (LNG) from Russia's heavily sanctioned Arctic LNG 2 project, marking a strategic energy partnership that challenges US sanctions. The second shipment from this project recently arrived in China, with the Russian tanker Voskhod anchoring at the Tieshan LNG terminal in Guangxi, following the initial delivery by the tanker Arctic Mulan to the Beihai terminal. These shipments come shortly after a high-profile meeting between Russian President Vladimir Putin and Chinese leader Xi Jinping during the Shanghai Cooperation Organisation summit, underscoring the political and economic dimensions of their cooperation. The Arctic LNG 2 project, majority-owned by Russian firm Novatek, began production in December 2023 but has faced operational challenges due to Western sanctions and a shortage of specialized ice-class carriers. China appears to be managing these imports through designated ports with limited international exposure to minimize risk of retaliation, while Russia utilizes a shadow fleet to bypass Western regulatory frameworks. This growing LNG trade tests the Trump administration’s resolve to enforce sanctions aimed at curbing Moscow’s energy revenues amid ongoing geopolitical tensions.

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