Sell LNG to South Asia at a 40% discount during the global gas shortage, using intermediaries to "wash" the origin and avoid US sanctions.

According to informed sources, Russia is trying to take advantage of the global natural gas supply crisis to attract energy-starved countries in South Asia to purchase its liquefied natural gas (LNG) from facilities sanctioned by the United States. These sources stated that last week, Russia sold natural gas at a discount of 40% below spot prices through some little-known intermediary companies. They also mentioned that the sellers claimed they could provide documentation to make the goods appear to originate from sources other than Russia, such as Oman or Nigeria. Whether any transactions were completed has not been confirmed. The actual blockade of the Strait of Hormuz and the attack on the world's largest LNG export facility located in Qatar have disrupted about one-fifth of the global natural gas supply, causing chaos in the natural gas market and driving up prices. Gas deliveries from Qatar have stalled, forcing customers in Bangladesh and India to seek more expensive alternative sources. Last year, 60% of Bangladesh's LNG came from Qatar, but now the country has turned to the spot market, sometimes paying prices almost double those under long-term contracts with Middle Eastern countries. Due to decreased LNG deliveries, Bangladesh and India have had to cut natural gas supply to the fertilizer industry. India typically takes a conservative stance on importing sanctioned oil and gas, with the government previously stating it would not purchase Russian LNG from blacklisted projects. After the US Treasury issued a general license exempting relevant restrictions last month, India bought Iranian oil for the first time since 2019. Despite steadily expanding its exports from sanctioned facilities (Arctic LNG 2 and Yamal LNG projects), Russia's buyers remain cautious about receiving restricted goods due to fears of US retaliation. Expanding LNG supply will help Russia diversify its customer base and increase exports from facilities on the blacklist. The Arctic LNG 2 project was originally planned to be Russia's largest LNG plant, starting exports in 2024, but its full capacity is constrained by a lack of transportation capability and interested buyers.