Russia offers discounted sanctioned gas to South Asian countries – Bloomberg

Russia is offering South Asian countries liquefied natural gas (LNG) from sanctioned facilities at a 40% discount to spot prices, and promises to provide documentation to make cargo appear as if it originates from non-Russian sources such as Oman or Nigeria.

Source: Bloomberg

Quote from Bloomberg: "Russia is seeking to leverage a global natural gas supply crunch to lure energy-starved South Asia into purchasing shipments from its US-sanctioned facilities."

Details: Over the past week, cargoes have been offered at a 40% discount to spot prices through little-known intermediary companies based in China and Russia.

Sellers said they could provide documents to make it appear that the cargoes originate from non-Russian sources, such as Oman or Nigeria, Bloomberg sources report.

The closure of the Strait of Hormuz and attacks on the world's largest LNG export plant in Qatar have reduced about one-fifth of global supplies, disrupting the gas market and driving up prices.

Qatari cargoes have been halted, forcing customers in Bangladesh and India to seek more expensive alternatives, the agency reports.

"Bangladesh, which received 60% of its LNG from Qatar last year, has resorted to buying shipments from the spot market, at times spending roughly double what it would have under its long-term contracts with the Middle Eastern nation," the report says.

Bangladesh and India have also had to limit gas supplies to the fertiliser sector due to reduced LNG deliveries.

India generally takes a cautious approach to importing sanctioned oil and gas, and its government has previously stated it would not import Russian LNG from projects under sanctions.

India recently purchased its first cargo of Iranian oil since 2019 after a US Treasury general licence issued last month lifted restrictions.

Although Russia continues to expand exports from US-sanctioned facilities such as Arctic LNG 2 and Portovaya, most buyers are wary of accepting restricted cargoes, fearing retaliation from Washington, Bloomberg reports.

China remains the only country importing sanctioned Russian LNG via a network of shadow fleet vessels, the agency notes.

Expanding supplies beyond China would help Russia diversify its customer base and increase exports from its sanctioned facilities, the report says.

Arctic LNG 2 – designed as Russia's largest LNG plant – began exports in 2024, but its full capacity has been limited due to a lack of shipping capacity and willing buyers.

Background:

• US liquefied natural gas exports reached a historic high in March 2026, totalling 16.1 billion cubic metres. The previous record was 15.9 billion cubic metres, set in December 2025.
• Earlier, it was reported that Russian gas exports to Europe increased by 22%.
• Indian companies have reduced gas supplies to industry in preparation for tighter balances amid the risk of reduced supplies from the Middle East after the leading producer, Qatar, halted production.

Support Ukrainska Pravda on Patreon!