Russia offers LNG to Asian countries at 40% discount

With the war in the Middle East causing Asian countries to scramble for fuel, Russia is said to be offering liquefied natural gas (LNG) shipments at a discount of as much as 40%, Bloomberg reported on Thursday (April 9).

The conflict, which began when the United States and Israel started bombing Iran on Feb 28, has caused the effective closure of the Strait of Hormuz, through which around a fifth of the world’s supply of oil and natural gas transits. Furthermore, infrastructure for LNG, such as in Qatar, has also been damaged by the war.

This has caused a spike in the price of fuel, and Asian countries, which have relied on the Gulf for their energy needs, have been disproportionately affected. For example, India and Bangladesh are heavily dependent on LNG for domestic use, have been struggling to get enough supply, and have been paying much higher prices.

In 2025, Bangladesh imported 60% of its LNG supply from Qatar. However, with recent shortages, it has been buying cargo from the spot market, but these immediate transactions are costing the country around twice as much as what it normally pays under its long-term contracts with Qatar.

“Russia is trying to use a global natural gas supply shortage to lure energy-hungry South Asia to buy cargoes from its facilities that fall under U.S. sanctions,” the report reads.

People who are familiar with Russia’s alleged offer told Bloomberg that the discounted shipments of LNG are being marketed through intermediary firms in China and Russia, with sellers reportedly saying that they can give buyers documents that show the cargo came from an alternative source, including Nigeria or Oman.

However, whether any country has taken up Russia’s offer is unknown, the report added, although it cited India as having said it will not buy LNG from Russian gas projects that are under sanctions. After US authorities issued a temporary waiver, India was able to import crude oil from Iran for the first time since 2019.

Russia had been endeavouring to export fuel from Arctic LNG 2, Portovaya, and other sanctioned gas projects in order to increase its customer base, but buyers from other countries have been wary of purchasing from them, due to the possibility of retaliation from the US.

China, however, has been importing these shipments, doing so via shadow fleet vessels.

“Expanding supplies to countries beyond China would help Russia diversify its client base and expand exports from its sanctioned facilities,” Bloomberg added. /TISG

Read also: War in Iran leaves Southeast Asia scrambling for oil from Russia