Revenue for Russian LNG Exports Decreases as Shift to Asia Doubles Costs Maritime Activity Reports, Inc. May 18, 2026 © Adobe Stock/alexyz3d Russia's diversification of its liquefied natural gas exports to Asia after the loss of the European market will cut its revenue due to at least a doubling of logistics costs, industry sources and analysts told Reuters. The European Union plans to fully phase out Russian LNG imports from the beginning of 2027 as part of its sanctions pressure on Moscow over the war with Ukraine. In an attempt to regain the initiative, President Vladimir Putin said early in March that Russia could stop gas supplies to Europe ‌with immediate effect and seek longer-term commitments from other buyers. But that so far has proved challenging. Industry sources told Reuters that India refused to buy a cargo from Russia's U.S.-sanctioned plant. One industry source said Russian LNG may have proved too expensive once transport costs and sanctions-related complications were factored in. A trip from Yamal LNG on the Arctic Yamal peninsula to Europe takes around 17 to 20 days, compared with much longer routes to Asia: 50 to 60 days via the Suez Canal, 70 to 80 days via the Cape of Good Hope, and 50 to 65 days via the Northern Sea Route (NSR) across Russia's Arctic shores. Transport costs from the plant to a port in Europe average $1 to $1.5 per million British thermal units (mmBtu) to northwest Europe and $2.5 to $5 to India, or around $3 on average, said Alexei Belogoryev, a research director at the Institute for Energy and Finance in Moscow. NORTHERN SEA ROUTE TOO COSTLY The Suez Canal currently offers the lowest-cost route for Russian LNG, although it carries security risks, analysts say. "For year-round deliveries to India, this is the most optimal option," said Alexander Buyanov, deputy head of the Moscow-based Central Research Institute of the  Maritime  Fleet. By contrast, the Northern Sea Route — a key focus of Russia's transport strategy —