Moscow is handing over control of gas export insurance to China
The Central Bank of the Russian Federation has recommended that major insurance companies transfer reinsurance of risks associated with liquefied natural gas supplies to China to Chinese entities. In this way, the Kremlin is effectively increasing its dependence on Beijing in the area of energy exports.
This is stated in a report by the Foreign Intelligence Service of Ukraine dated May 11.
After 2022, Russian insurers will be cut off from the Western market. Their own capacity is insufficient—the sums involved are too large and the logistics too complex. The only remaining option is Chinese companies.
By joining the scheme, China gains significant leverage: whoever controls the insurance terms controls the logistics and the very possibility of deliveries. Formally, this is not ownership of assets, but in effect, it amounts to the same thing.
Imports of Russian LNG to China rose by 18.3% in 2025. In the first quarter of 2026, Russia supplied 1.4 million tons to China—6.72% more than a year earlier. China has become the primary and, in effect, the only market for Russian liquefied natural gas.
Chinese reinsurers will factor sanctions, logistical, and political risks into their premium rates. Beijing is under no obligation to keep the terms unchanged—and at any moment may revise rates, narrow coverage, or impose new conditions in exchange for lower gas prices or concessions on other projects. Moscow will have no way to respond.
As a reminder, the U.S. and China are preparing for a new round of trade talks ahead of Trump’s visit.
Earlier, China lodged a protest with the UK over new sanctions against Chinese companies cooperating with Russia.
Prior to this, Chinese authorities had advised their companies to ignore U.S. restrictions against five refineries involved in operations with Iranian oil.
