Russia Pushes Sanctions-Busting Energy Deals to Fund Prolonged War

Russia Pushes Sanctions-Busting Energy Deals to Fund Prolonged War Russia is aggressively pursuing discounted energy sales and strategic resource grabs abroad to fund its military campaign in Ukraine, as Western sanctions strain its economy and force creative financial maneuvers. In a direct move to circumvent sanctions and generate revenue, Russia is offering liquefied natural gas (LNG) to South Asian nations at a steep 40% discount [124585]. The fuel is being marketed from U.S.-sanctioned export projects through obscure trading firms in China and Russia, targeting energy-starved countries with a tempting deal for vital supplies. This strategy aligns with a reported request from President Vladimir Putin to Russian oligarchs for direct donations to support the military budget, highlighting growing financial pressure from the war [112938]. Russia's defence spending surged by 42% last year, widening the budget deficit as sanctions force it to sell oil at a discount [112938]. Simultaneously, Russia is securing long-term strategic assets. In Africa, a Russian state-owned mining company finalized a major deal with Mozambique, gaining extensive rights to mine critical minerals like cobalt and graphite—essential for electric vehicles and electronics—and securing operational control over the deep-water Port of Pemba on the Indian Ocean [123980]. Major economies are testing the sanctions regime. At least two Japanese trading houses are considering resuming imports of Russian aluminum, motivated by long-term supply security worries despite Western efforts to isolate Moscow [124189]. While Japan voluntarily stopped buying after the invasion, a return would signal cracks in the international front. Analysts note that Putin shows no sign of relenting strategically, indicating a commitment to a prolonged conflict despite the economic strain [17910]. This determination is partly funded by resilient energy income; higher global oil prices have doubled the Kremlin's oil revenue since May [123062]. In response, Ukraine has expanded its campaign to strike at Russia's economic lifeline, intensifying drone attacks on Baltic Sea oil ports that handle 40% of Russia's crude exports [123062]. The goal is to disrupt the revenue funding the war and the purchase of Iranian weapons systems [123062]. Russia Offers Secret 40% LNG Discount to South Asia Putin Seeks Oligarch Donations to Fund War as Defence Budget Strains Russia Secures Key Minerals, Strategic Port in Africa Japan May Turn to Russian Aluminum, Testing Sanctions Resolve Putin Signals Long War in Ukraine Amid Economic Strain Ukraine Strikes Russian Oil, Targeting Iran's War Profits