Russia is offering Liquefied Natural Gas (LNG) at a discount to South Asian countries, including BRICS members, reported Bloomberg. The Putin-led administration is leveraging the global oil supply crunch due to the closure of the Strait of Hormuz. The recent ceasefire of two weeks between the US, Israel, and Iran has reopened the Strait but is restricted and operated under Iranian control.

Energy-starved countries in South Asia and BRICS members can now benefit from Russia’s steep discount on LNG prices. It is reported that Russia is offering close to $60 per barrel against the market rate of close to $100. The purchase of sanctioned oil will also help Russia uplift its economy, as businesses have stalled due to the Middle East conflict.

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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.