Russia’s central bank has advised domestic insurers to avail Chinese reinsurance cover for liquefied natural gas (LNG) shipments to China, amid capacity constraints in insuring energy exports, Ukraine’s foreign intelligence service said.
The move underscores ongoing structural pressures on Russia’s insurance sector, following the effective exclusion of domestic carriers from international insurance and reinsurance capacity since the early months of the 2022 invasion. Local insurers have since faced limitations in supporting large, complex energy‑related exposures, prompting greater reliance on alternative sources of capacity.
Trade data highlights the growing importance of the Russia-China LNG corridor. Imports of Russian LNG into China increased by 18.3% in 2025, while volumes reached 1.4m tonnes in Q1 2026, up 6.72% year-on-year. China has consequently become the primary destination for Russian LNG exports, according to the update.
By assuming a greater share of risk associated with LNG shipments, Chinese insurers and reinsurers are likely to incorporate a range of risk factors into pricing, including sanctions exposure, logistical complexity and broader geopolitical conditions. In turn, Chinese players stand to gain an effective position as key providers of coverage for LNG exports to China.
Meanwhile, India, another key market for Russian energy exports, in April expanded the range of Russian insurers authorised to underwrite marine risks for vessels calling at its ports, lifting the total number of approved providers to 11.
Since the invasion of Ukraine, insurers have faced challenges dealing with elusive shadow fleets of ships that circumvent all types of international sanctions. The shadow fleet consists of vessels used by Russia to evade international sanctions and maintain oil exports. These ships reportedly employ deceptive tactics such as flag-hopping, disabling tracking systems, and operating without adequate insurance.
