Russia reduces exports of liquefied natural gas, while deliveries to China surge by 44%
Russia's liquefied natural gas (LNG) exports saw a significant drop in July 2025, with volumes decreasing by approximately 21% compared to previous months. This marks the fourth consecutive monthly decline, and revenues dropped by 19% [1][2].
The primary reason for this reduction can be attributed to regulatory and sanctions-related barriers imposed by the European Union, specifically targeting transshipment routes. In March 2025, the EU enacted a ban on LNG transshipments in European waters, which had allowed Russian LNG to continue reaching European markets despite broader sanctions [1][2]. As a result, Russian LNG exports to Europe dropped by 13% year-on-year [1][2].
In response to these EU sanctions, Russia has increasingly redirected its natural gas and LNG exports towards Asian markets, particularly China. However, even deliveries to China reported a decline, with LNG exports falling by around 18.8% in the first seven months of 2025 [1][4].
The overall drop in exports can also be attributed to seasonal growth in demand and maintenance work at some plants. Typically, these plants undergo maintenance in June and July, which led to a reduction in production [3]. Additionally, the decrease in Russia's mineral product exports can be attributed to falling oil prices and the cessation of gas transit through Ukraine [3].
Notably, shipments to China increased by 44% in July, reaching 61,000 tonnes - the highest figure since the start of the year. This increase can be attributed to the EU embargo, making China one of the main destinations for Russian liquefied gas [1][4].
Tunisia was the largest export destination in July, receiving 68,000 tonnes of Russian liquefied gas. Exports to Central Asian countries fell by 8% to 92,000 tonnes. Supplies to Belarus and Poland halved to 17,000 tonnes, while Afghanistan received 44,000 tonnes of Russian liquefied gas [3].
The specific plants that have reduced their supplies are Lukoil-PNOS and ZapSibNeftekhim [3]. The reduction in production at these plants has contributed to the overall decrease in Russia’s LNG exports.
In summary, the key drivers of the decline in Russia's LNG exports are regulatory and sanctions-related barriers imposed by the European Union, combined with secondary effects on volumes and revenues for Russian LNG exporters [1][2][3][4].
| Factor | Details | |---|---| | Reason for reduction | EU ban on LNG transshipments in European waters from March 2025; tighter EU sanctions aiming to reduce Russian energy imports; impact of sanctions on export volumes and revenues | | Impact | Russian LNG exports down 4.4% in first half of 2025; July LNG export volumes down 21%; LNG exports to Europe dropped 13% year-on-year | | Main export destinations | Europe (declining sharply due to sanctions), Asia (notably China, but volumes to China also down almost 19% for LNG) | | Plants contributing to the decrease | Lukoil-PNOS and ZapSibNeftekhim | | Changes in shipments | Increase in shipments to China; decreased shipments to Europe, Belarus, Poland, and Central Asian countries |
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