Russian LNG prices halved due to EU sanctions

In the Russian Federation, liquefied gas prices have halved after EU sanctions.

LNG prices in Russia in December halved compared to November – due to an increase in supply on the domestic market after the introduction of sanctions. This is reported by Reuters.

EU sanctions on imports of Russian liquefied gas came into force on December 20. They were initiated by Poland, which was one of the largest importers of this fuel.

LNG, including propane and butane, is used as fuel for cars, for heating and in the petrochemical industry.

Due to export restrictions, the volume of liquefied gas on the domestic market of Russia has increased sharply, which led to a drop in wholesale prices to $ 140 per ton in December.

Before the introduction of sanctions, exports to Poland brought Russia up to $ 230 per ton. However, exports are currently possible only for a limited volume of Russian LNG, which is about 20% of previous export figures.

At the same time, Russia has increased its supplies of liquefied gas to China, Mongolia, Armenia, Georgia and Azerbaijan. According to traders, Russian exports to China have the potential for further growth.

Liquefied gas is also exported to Afghanistan, but deliveries are complicated by problems with financial settlements.

As USM wrote, the Lithuanian Foreign Ministry recently called for new sanctions against Russian LNG.