Financial Wire

Market Chatter: Russia Gas Pivot to China Comes With 38% Discount to European Prices

-- Russia is expected to sell gas to China at about 38% below European prices, Bloomberg reported on Monday, citing two people familiar with governmental forecasts.

The pricing gap reflects Moscow's reduced leverage after losing most European buyers following the 2022 Ukraine invasion, the report said.

Government forecasts indicate prices for China will average about $258.80 per 1,000 cubic meters this year, well below levels paid by remaining European buyers, the report said.

Gas exports to China are projected to remain significantly discounted, with the gap narrowing but still above 27% by 2029, according to the sources.

Data show Russia sold gas to China at about $248.7 per 1,000 cubic meters last year, again more than 38% below European prices, the report added, citing government data.

Gazprom Chief Executive Officer Alexey Miller said pricing differences reflect shorter transport distances to Asian markets, the report added, citing Interfax.

Most of Russia's gas trade with Europe collapsed after the 2022 Ukraine invasion, with only a few countries such as Hungary, Slovakia, Serbia and Turkey continuing to receive pipeline supplies, according to the report.

Russia has increased gas shipments to China via the Power of Siberia pipeline, which reached its full capacity of 38 billion cubic meters in 2025, with deliveries slightly exceeding that level, according to Gazprom data cited in the report.

Eastbound exports are expected to climb to about 52.5 billion cubic meters by 2029, supported by new deals and infrastructure expansion with China National Petroleum Corp., the report said.

Meanwhile, pipeline gas shipments to Europe are forecast to fall to around 32 billion cubic meters annually by 2028-2029, down from 36 billion this year, the report added.

Before the 2022 invasion, Gazprom supplied up to 200 billion cubic meters of gas annually to a range of European customers, the report said.

has reached out to Gazprom for any comments.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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