Russia is offering its sanctions-hit liquefied natural gas (LNG) at high discounts to South Asian countries amid the energy crunch.
The country offered a discount of 40 percent on LNG shipments last week, according to a report by Bloomberg.
The discounted gas is being produced in Russia’s US-sanctioned facilities and is being provided through little-known intermediary companies of China and Russia.
The sellers have methods to make the gas appear as if it originated from non-Russian sources, like Oman or Nigeria, the report said, citing sources.
Several natural gas facilities in the Gulf region have been hit since the start of the war in late February. One of the first attacks was made on the Ras refinery in Qatar. This is the world’s largest gas refinery in terms of exports.
The crisis has skyrocketed oil and gas prices due to a huge mismatch in supply and demand.
The United States Treasury Department on March 5 had issued a 30-day waiver to allow the sale and delivery of sanctioned Russian oil which was already loaded on vessels.
The relief was given due to the oil supply crunch after the blockade of the Strait of Hormuz.
Around 15 million barrels per day of crude and 5 million barrels per day of oil products passed through the Strait of Hormuz in 2025, according to S&P Global Commodities at Sea data.
Though the US and Iran agreed on a ceasefire for two weeks, attacks in the Gulf region continue, diminishing the hopes of recovery from the energy crisis.
In this scenario, sanctions-hit Russian natural gas may find takers in Asia, a continent heavily dependent on imports to meet energy needs.
So far, China has been the only country to buy sanctioned Russian natural gas using a network of shadow fleets.
India, on the other hand, has remained wary of buying sanctioned vessels in anticipation of retaliation from the US.
