⛽️ Russian LNG Trade Shifts Eastward 🇷🇺➡️🇨🇳 — Swiftly and at Lower Prices
Russia is rapidly changing the direction of its liquefied natural gas shipments towards the east. In November alone, the volume of Russian LNG imported by China reached 1.6 million tons, marking a record achievement. The amount has more than doubled compared to last year, positioning Russia ahead of Australia, with only Qatar remaining ahead in the rankings. Data supported by Bloomberg highlights this transition. 😉
💸 What is driving this sudden increase?
The straightforward reason is pricing.
Russian LNG has emerged as the most affordable option among several suppliers to China. Although sanctions are in place, substantial discounts have greater importance than political factors.
📉 Europe Out, Asia In
Gas supplies that were previously sent to the EU are now finding their way to China.
The approach is quite simple:
If it can't be close and costly, it has to be distant and inexpensive. 🤪
✔️ Benefits include:
— Exports persist, helping maintain foreign currency earnings
— LNG facilities are operating at full capacity
— China offers a significant and dependable demand source
❌ Drawbacks include:
— Substantial price reductions lower profit margins
— Profitability is considerably weaker than during the period focused on Europe
— China dictates terms, rather than negotiating as an equal partner
⚠️ The Truth About Sanctions
Sanctions do not immediately cripple economies; their impact intensifies gradually.
Exports are still ongoing.
Revenue continues to flow in.
However, this has shifted from a growth-oriented economy to one that prioritizes adaptation and survival.
📌 For Russia presently, China is not merely a strategic ally; it has become a fallback buyer.
Without China, the outlook would be significantly worse.
With China, the situation is merely less difficult.
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