Russia’s Growing Energy Dependence on China
Russia’s central bank has advised its major insurance firms to use Chinese entities for reinsuring liquefied gas deliveries to China. This move gives Beijing the ability to oversee a critical component of Russia’s energy exports. Ukraine’s foreign intelligence service notes that controlling insurance terms provides leverage over logistics and the very feasibility of shipments.
After 2022, Russian insurers lost access to Western insurance and reinsurance markets, forcing them to turn to Chinese partners. Imports of Russian liquefied natural gas (LNG) into China rose by 18.3% in 2025. In the first quarter of 2026, Russia shipped 1.4 million metric tons of LNG to China—a 6.72% increase compared to the same period last year.
This development allows China to hold a powerful tool over Russia’s energy exports. While it does not formally involve asset ownership, the practical effect of controlling insurance terms enables China to shape logistics and the possibility of future deliveries. As a result, China has become Russia’s primary and virtually irreplaceable market for LNG.
China’s Growing Sway Over the Russian Economy
Moscow is increasingly dependent on Beijing not only as a buyer but also as a participant in financial and insurance logistics. Chinese reinsurers can factor sanctions, logistical hurdles, and political risks into their premium pricing. Beijing is under no obligation to keep current terms unchanged and could at any point adjust rates, limit coverage, or impose fresh conditions.
This could lead to demands for lower gas prices or concessions from Russia in other joint projects. If China alters insurance conditions, Russian LNG shipments could become costlier, more complicated, or less reliable. The Kremlin’s ability to respond is effectively constrained, as alternative channels have narrowed significantly since 2022.
Following the start of the full-scale war in Ukraine, the European Union began reducing its reliance on Russian energy, though imports of Russian LNG have not stopped entirely. This means the energy landscape remains complex, with major implications for both countries.
The Russian central bank’s recommendation to reinsure gas delivery risks through China underscores Moscow’s deepening dependence on Beijing in the energy sector. By gaining control over insurance terms, China now has the ability to influence a key aspect of Russia’s economy—potentially reshaping supply logistics and pricing. This reflects a broader trend in which Russian energy resources are increasingly subject to Chinese financial and insurance interests, creating new challenges for Russia’s energy strategy.
The evolving dynamics of Russia's energy trade with China also highlight significant pricing advantages. As outlined in a recent analysis, Russian gas is projected to remain considerably cheaper for China compared to European sources until at least 2029. This price disparity could further solidify China's influence over Russian energy exports, making it imperative for Moscow to navigate its relationship with Beijing carefully.