moscow Has Handed over the Insurance Market to Beijing

The central bank of the rf has sent a letter to major insurance companies recommending that they reinsure the risks associated with liquefied natural gas shipments to China through Chinese insurance entities. The goal is to shift part of the financial risks to the Chinese market, as moscow can no longer bear the burden of its own energy exports alone and is asking Beijing to share it.

After 2022, russian insurers are effectively cut off from the Western insurance market. Their own capacity is insufficient: the sums involved are large and the logistics is too complex. That is why the kremlin has turned to the only remaining option – Chinese companies.

By joining the scheme, China gains significant leverage – whoever controls the insurance terms controls both the logistics and the very possibility of deliveries. This is not formal ownership of assets, but de facto, it is the same thing.

According to data from the General Administration of Customs of the PRC, imports of russian LNG to China in 2025 increased by 18.3%. In the first quarter of 2026, russia supplied 1.4 million tons to China – by 6.72% more than a year earlier. China has become the main and, in fact, the only destination for russian liquefied natural gas.

The problem for moscow is that Chinese reinsurers aren’t in the business of charity: they will factor sanctions, logistical, and political risks into their premium rates. The red tape involved in approvals, stricter disclosure requirements, and dependence on Beijing’s regulatory mood – all of this becomes a fixed cost that will only grow over time.

And most importantly, Beijing is under no obligation to keep the terms unchanged. If sanctions pressure intensifies or market conditions change, China may  easily revise rates, narrow coverage, or impose new conditions – in exchange for lower gas prices or concessions on other projects. russia will have no way to respond.

For years, moscow has positioned its “pivot to the East” as a strategic choice. In reality, it is a capitulation that is gradually becoming standard practice. Now, russia is even having others write out insurance policies for its own gas.