NextFin news, China has increased its imports of liquefied natural gas (LNG) from Russia's Arctic LNG 2 project, which is under U.S. sanctions, with shipments arriving at the Beihai terminal in China this past weekend and early this week. This development was reported on Monday, September 8, 2025, by multiple news outlets including Bloomberg and Business Standard.
The second tanker carrying LNG from the sanctioned Russian export plant arrived in China on Saturday, September 6, 2025, marking a continuation of Beijing's strategy to expand energy trade with Moscow despite U.S. sanctions. The first shipment from the Arctic LNG 2 project was received in late August 2025, and additional cargoes are en route, reinforcing the growing energy ties between the two countries.
This increase in imports is part of a broader trend in 2024-2025, where China has boosted its LNG purchases from Russia by 28.3% year-on-year, driven by pipeline supplies such as the Power of Siberia and spot cargoes from Arctic LNG 2. By July 2025, China accounted for 21% of Russia's LNG exports, making it the second-largest buyer after the European Union.
China and Russia have developed mechanisms to bypass U.S. sanctions, including yuan-denominated settlements, use of domestic payment systems like Russia's SPFS and China's CIPS, and blockchain-based payment initiatives such as BRICS Pay. These systems reduce reliance on the U.S. dollar and Western financial infrastructure, allowing continued trade despite sanctions.
The shipments arriving at the Beihai terminal in southern China demonstrate operational continuity of the sanctioned Arctic LNG 2 project. PetroChina, a major Chinese energy company, discharged the cargo, signaling China's refusal to recognize unilateral U.S. sanctions and its commitment to securing energy supplies.
The growing LNG trade between China and Russia is part of a larger geopolitical realignment involving BRICS and OPEC+ countries, which are coordinating to reshape global energy markets and reduce Western dominance. This includes increased oil production targeting Global South markets and financing energy projects through institutions like the BRICS New Development Bank.
The U.S. sanctions aimed at curbing Russian energy exports have thus far not deterred China from expanding its imports, testing the effectiveness and resolve of these sanctions. The ongoing shipments and trade arrangements highlight a shift in global energy dynamics and the emergence of alternative financial and trade networks.
Sources: Bloomberg (September 6, 2025), Business Standard (September 8, 2025), AInvest (September 3, 2025).
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