Novatek sells sanctioned gas to China at discounts of up to 40 percent

Russian energy giant Novatek is offering Chinese firms significant discounts on liquefied gas from the Arctic LNG 2 project, which is subject to Western sanctions. According to Reuters sources, the discounts range between 30 and 40 percent, meaning the cargo is being sold below market value.

The first shipment was made in late August, with 14 shipments having taken place since then. All have been bound for the Beihai terminal, which since August has become the exclusive entry point for Russian LNG in China.

The move ended the project's previous commercial uncertainty and also confirmed Beijing's refusal to abide by Western energy sanctions against Moscow.

The United States has urged allies to cut off purchases of Russian energy, but has not yet intervened against China itself - presumably in part because of efforts to hold onto its own LNG contracts.

(reuters, swag)