Russia’s sanctioned LNG sector finds lifeline in China

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Western sanctions were meant to suppress parts of Russia's LNG industry, but a new trade flow is giving the sector a lifeline.

Since the second half of 2025, Platts has tracked a steady stream of blacklisted LNG cargoes – more than two dozen since August, most of them linked to the Novatek-owned Arctic LNG 2 plant in Russia.

They've all had the same destination: the port of Beihai in southern China.

But they haven’t all taken the same route, and that’s where it gets interesting.

By far, the shortest journey is via the Northern Sea, but icy conditions usually close it from December to June. 

The safest alternative is to head west and around the bottom of Africa. That extends transit times, though, and reduces sales.  

But lately, several sanctioned tankers have shortened the journey via the Red Sea.

There is a heightened risk. Shippers have been wary of the Red Sea since Houthi rebels began attacking vessels in late 2023.

But Russian sellers seem confident they can safely navigate the route. Those shorter transit times to Asia could soften the blow from a looming European import ban on Russian gas and LNG, up for a final vote around late January.