EU Cheats Sanctions, Buys Russian Gas From China
China’s demand for Russian energy has soared in recent months and Beijing is now importing roughly 29% more liquefied natural gas (LNG) and 64% more pipeline gas from Moscow than it did last year.
This increase has occurred despite economic troubles and a housing crash that should have resulted in decreased demand. Conveniently, China now finds itself with excess gas at a time when European markets are starving as a result of sanctions related to Russia’s invasion of Ukraine.
And because the Russian gas being sold to China is “tolled” in China, it can be resold as “Chinese LNG.” On paper, this means EU nations can purchase that gas from spot markets and still claim to oppose Russia.
Chinese oil refiner Sinopec Group confirmed it had funneled surplus LNG into the international market and Chinese LNG trader JOVO Group said it sold an LNG carrier (tank ship) to a European buyer in a deal that could be worth up to $100 million.
Ironically, because China is selling the Russian gas at inflated prices, EU nations are now contributing more than ever before to the coffers of Presidents Vladimir Putin and Xi Jinping.
Europe’s imports of LNG have jumped by 60% during the past six months and the total amount of “Chinese LNG” resold during that time frame is equivalent to roughly 7% of Europe’s total gas imports during that time frame.
The silver lining here is that the EU has increased its gas-storage occupancy rate to 77% and is less likely to face energy shortages during the cold winter months. The goal is to hit 80% by November 1st.
On the flip side, Europe is growing increasingly dependent on China and that relationship could impact the bloc’s response should China finally decide to invade Taiwan.
As noted in the Financial Times, “The more desperate Europe becomes about its energy supplies, the more China’s policy decisions will have the power to affect the bloc.”
Some analysts are concerned the steep prices the bloc is now forced to pay for LNG could spark a recession – not to mention what could happen when China’s economy bounces back and it no longer has excess LNG to offer.
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China is Laundering Russian Gas for Europe. Will the West Still Lecture India?
The EU appears to have no Principles The UK was absolutely right to Leave that corrupt entity. that seemed to have set out to destroy the UK by whatever means it could. and continues to try Borris and our population were totally correct in voting out. We joined following lies to the people and had to get out by whatever means possible . the EU wanted Northern Ireland for themselves , Well done Boris.
Can you really blame Europe? Joe says, you folks stop buying oil from Russia, we’ll institute sanctions against Putin, and we’ll supply you with all the oil you’ll need. So how did that work out? Joe implemented sanctions but couldn’t keep his promise to supply Europe with all the oil they needed, after all he didn’t restart oil production at home and the Saudi’s told him to pack sand. That left the Europeans out in the cold, figuratively. If I was a European, I wouldn’t trust a single word that came out of Joe’s mouth ever again, and I’m not sure I would ever truly trust the US again to keep their word.