Russia's Central Bank has instructed Russian insurers to reinsure risks related to liquefied natural gas (LNG) supplies to China with Chinese insurers, reported the Odessa Journal.
Through this action, Russia is keen to shift part of the financial risks from LNG shipments to China onto the Chinese market. China is currently the sole purchaser of Russian LNG. Data from China’s General Administration of Customs revealed that Russian LNG imports to China increased by 18.3% in 2025. In the first quarter of 2026, Russia supplied 1.4m tons to China — 6.72% more than a year earlier.
By joining this scheme, China gains a powerful lever of influence, considering that whoever controls the terms of insurance also controls logistics and the very possibility of deliveries. While it is not formal ownership of assets, the effect is similar in practice.
Since 2022, Russian insurers have been cut off from the Western insurance market. Moreover, domestic capacities are insufficient due to the scale of the sums involved and the complex logistics involved in the transportation of LNG.