China Gets Major Gas Discount From Russia

Russian government projections indicate that China will pay approximately $248 per thousand cubic meters for natural gas in 2026, according to the Moscow Times. This price is significantly lower than the $562 per thousand cubic meters charged to other foreign customers outside the former Soviet Union.

The Moscow Times cited Russian Duma documentation to report that the discount represents a 56% reduction in the price China pays for Russian gas. Officials said the discount is tied to China's ongoing political support for Russia's war effort in Ukraine.

With Western sanctions and the European Union's efforts to reduce dependence on Russian gas, China's purchases are seen as critical to sustaining Russia's military operations. Russia is expected to seek to reduce the discounts in the coming years, according to the Moscow Times.

China's purchases of Russian gas are part of a broader strategy to strengthen its influence in Central Asia. Chinese companies are investing in infrastructure, energy, and technology projects across the region, including in Uzbekistan, Tajikistan, and Kazakhstan.

Kazakhstan's President Tokayev announced the start of construction for a $1.8 billion copper smelter, with Chinese state-owned companies involved in the project. However, the full construction contract remains unsigned, and only a preparatory agreement has been signed so far.

Kazakhstan also signed an MoU with a Chinese firm for a $1 billion investment in the port of Kuryk, a key hub on the Middle Corridor. The project includes plans for a multifunctional terminal with a capacity of 15 million tons of cargo per year.