Russian LNG Makes Waves in China: A New Chapter for Sanctions and Trade

China has welcomed its inaugural shipment of liquefied natural gas (LNG) from a sanctioned Russian project, according to ship-tracking data from Kpler and LSEG. This development occurs just before a crucial meeting between Russian President Vladimir Putin and Chinese President Xi Jinping. The leaders aim to strengthen trade ties despite ongoing international sanctions against Russia.

Putin, alongside more than 20 global leaders including Indian Prime Minister Narendra Modi, is attending the Shanghai Cooperation Organisation summit in Tianjin. The summit is expected to serve as a platform for Russia to subtly circumvent economic sanctions, as seen by its recent diplomatic engagement with the U.S. that included talks about a peace agreement regarding Russia's actions in Ukraine.

The LNG cargo, delivered by the tanker Arctic Mulan, marks the first direct delivery from Novatek's Arctic LNG 2 project since its inception last year. This delivery is closely watched for any potential repercussions or signals about future sanctioned trade, as highlighted by energy experts. If deemed successful, it might prompt other nations like India to consider similar trade with Russian LNG.

(With inputs from agencies.)