
<p>China&#8217;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.</p>



<p>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&#8217;s invasion of Ukraine. </p>



<p><strong>And because the Russian gas being sold to China is &#8220;tolled&#8221; in China, it can be resold as &#8220;Chinese LNG.&#8221; On paper, this means EU nations can purchase that gas from spot markets and still claim to oppose Russia. </strong></p>



<p>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. ;</p>



<p>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. </p>



<p>Europe&#8217;s imports of LNG have jumped by 60% during the past six months and the total amount of &#8220;Chinese LNG&#8221; resold during that time frame is equivalent to roughly ;7% of Europe&#8217;s total gas imports during that time frame.</p>



<p>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. ;</p>



<p>On the flip side, Europe is growing increasingly dependent on China and that relationship could impact the bloc&#8217;s response should China finally decide to invade Taiwan. </p>



<p>As noted in the <em>Financial Times</em>, &#8220;The more desperate Europe becomes about its energy supplies, the more China&#8217;s policy decisions will have the power to affect the bloc.&#8221;</p>



<p>Some analysts are concerned the steep prices the bloc is now forced to pay for LNG could spark a recession &#8211; not to mention what could happen when China&#8217;s economy bounces back and it no longer has excess LNG to offer. ;</p>



<p><strong>Sources:</strong></p>



<p><a href="https://www.news18.com/news/opinion/china-is-laundering-russian-gas-for-europe-will-the-west-still-lecture-india-5906257.html">China is Laundering Russian Gas for Europe. Will the West Still Lecture India?</a></p>



<p><a href="https://www.zerohedge.com/markets/china-aggressively-reselling-russian-gas-europe">China is Aggressively Reselling Russian Gas to Europe ;</a></p>

EU Cheats Sanctions, Buys Russian Gas From China
