China has received its first direct cargo of sanctioned Russian liquefied natural gas. On Thursday, the Arctic Mulan tanker carrying LNG from the Arctic LNG 2 project docked at the Beihai terminal operated by PipeChina, Bloomberg reported.
The Arctic LNG 2 plant is central to Moscow’s plan to triple LNG exports by 2030 following the collapse of sales to the EU. The project was sanctioned by the Biden administration last year and had previously shipped fuel using Russian “shadow fleet.” But until now, none of those tankers had docked at an import terminal, as buyers feared U.S. retaliation.
The direct delivery came just ahead of Vladimir Putin’s planned meeting with Xi Jinping at the Shanghai Cooperation Organization summit, which begins Sunday. The shipment is also notable as China has reduced LNG imports amid rising domestic output and pipeline supplies — including from Russia.
Meanwhile, Russia is facing mounting risks of fuel shortages. Analysts at the Institute for the Study of War (ISW) assess that Ukrainian strikes on refineries will accelerate inflation and worsen the country’s economic outlook.
According to AP, gas stations in several Russian regions have already run dry, with motorists waiting in long lines as officials impose rationing or halt sales altogether. At the same time, wholesale fuel prices on the St. Petersburg Exchange have surged by 50% compared with January — a record spike.
