Novak says Russia may redirect LNG to India, China from EU: TASS

Novak says Russia may redirect LNG to India, China from EU: TASS

Russia is considering redirecting liquefied natural gas (LNG) supplies from European markets to Asia, particularly China and India, as tensions escalate over energy exports and geopolitical pressures, according to Deputy Prime Minister Alexander Novak. Speaking on March 5, Novak stated the government would soon evaluate energy export strategies, including potential halts to European deliveries, amid President Vladimir Putin's remarks linking the decision to the EU's proposed gas import bans and rising energy prices triggered by Middle East conflicts.

The shift aligns with Russia's broader strategy to mitigate the impact of Western sanctions and redirect resources to markets less hostile to its energy exports. Sergey Kaufman, an analyst at Finam, noted that LNG—unlike pipeline gas—can be rerouted to Asian buyers, where demand remains strong. Russia's LNG exports to Europe currently account for 12% of the region's supply, but Novak emphasized that Asian partners, including China and India, could absorb redirected volumes if demand increases.

However, logistical challenges exist. Longer shipping distances to Asia may require additional LNG carriers, increasing costs and complicating supply reorientation. European gas prices surged to over $650 per 1,000 cubic meters following Putin's comments, reflecting market uncertainty. Meanwhile, the global LNG market is expected to grow significantly through 2030, driven by U.S. and Qatari exports, which could ease Europe's transition away from Russian supplies.

The move underscores Russia's pivot to Asia amid deteriorating relations with the EU and highlights the strategic importance of LNG in maintaining energy revenue amid geopolitical volatility.