Russia is offering Liquefied Natural Gas (LNG) at a steep 40% discount to energy-starved South Asian nations and BRICS allies, pricing barrels near $60 against a global market rate approaching $100. The Putin-led administration is capitalizing on the ongoing global supply disruption following the restricted reopening of the Strait of Hormuz, now under Iranian control after a recent ceasefire. This move not only provides relief to importing nations but also offers Russia a critical economic lifeline as it seeks to offset business stalls from Middle East conflicts and sanctions by moving discounted, sanctioned oil.

BRICS & South Asian Nations Benefit From Russia’s LNG Discount

BRICS members and other South Asian nations were offered the 40% LNG shipments discount last week. Intermediary companies based in China and Russia brokered the deals, helping load the shipments to their respective destinations. The US, which demanded India stop procuring sanctioned oil from Russia in a trade deal, reversed track the next month.

India had saved nearly $7 billion in foreign exchange reserves by buying Russian oil since 2022. Even Saudi Arabia previously procured Russian oil and laundered it across Europe for a higher price. Therefore, BRICS members saved billions from Russian oil sanctions, as the shipments were sold at a steep discount. The trend is being continued again in 2026, as the energy supply is choked due to the war.

However, while BRICS members and countries in South Asia benefit from Russia’s LNG discount, other nations are wary of procurement. Fears of retaliation from US President Donald Trump over tariffs remain. China is the only country that has been relentlessly buying Russian LNG since the sanctions were imposed by the White House in February 2022.