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China Assigns Port to Handle Sanctioned Russian LNG From Arctic Project
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![Photo of Ivan Khomenko]( "Photo of Ivan Khomenko")
China has designated the port of Beihai in the south of the country to handle regular deliveries of liquefied natural gas (LNG) from Russia’s Arctic LNG 2 project, which remains under US sanctions.
According to Bloomberg, the move allows Chinese companies to continue receiving shipments while limiting potential exposure to secondary sanctions.
The third tanker carrying LNG from Arctic LNG 2 is scheduled to unload in Beihai on Monday, Bloomberg reported, citing vessel tracking data.
Sources familiar with the matter told the outlet that the port has been set aside specifically for sanctioned Russian cargoes. Because Beihai has limited international connections, Beijing aims to shield its wider gas sector from possible retaliatory measures by Washington.
Chinese importers, including the state-owned Cnooc, are redirecting LNG delivered to Beihai to other domestic ports to avoid direct association with sanctioned cargoes, Bloomberg wrote.
Some foreign traders have reportedly chosen to avoid the port altogether. At least four additional tankers carrying LNG from Arctic LNG 2 are currently headed toward Beihai, the report said.
Novatek, Russia’s largest independent gas producer, had initially planned to begin exports from Arctic LNG 2 in early 2024. However, the company struggled to secure buyers for more than a year, even after offering discounts of up to 40 percent during international tours backed by Russian officials, according to Bloomberg.
The first shipment from the project was loaded onto the tanker Arctic Mulan in June 2025 and delivered to Beihai days before Vladimir Putin’s visit to China for the Shanghai Cooperation Organization summit.
Earlier, Financial Times reported that China is preparing to open its domestic bond market to Russian energy firms through yuan-denominated “panda bonds.” Regulators in Guangzhou told Russian executives in late August that issuers could include Rosatom, Gazprom, and Novatek, although Chinese brokers remain cautious about secondary US sanctions.
