Sanctions are taking effect: Russia has lost its global leadership in pipeline gas exports

23 May 15:07

By the end of 2025, Russia had lost its status as the world’s largest exporter of pipeline natural gas, ceding the top spot to Norway. This is stated in a report by the International Gas Union (IGU). According to these figures, Norway exported 108.6 billion cubic meters of gas via pipelines last year, while Russian exports totaled 103.5 billion cubic meters. This is reported by "Komersant Ukrainian" citing DW.

Compared to 2005, pipeline gas exports from Russia have more than halved, according to the IGU report. Analysts estimate that this is due to a sharp drop in supplies to Europe following the start of the full-scale invasion of Ukraine in 2022.

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Russia is attempting to pivot toward the Asian market

Russia is actively shifting its natural gas exports toward China and other Asian countries. The authors of the IGU report suggest that this strengthens Beijing’s position in negotiations with the Kremlin, as China is the key market for future potential supplies via the “Power of Siberia 2” pipeline, the construction of which has been under discussion for many years.

As the IGU notes, “Power of Siberia 2” is of strategic importance to Russia, as this pipeline is intended to restore export volumes that were lost after Gazprom’s withdrawal from the European market. However, progress in discussions regarding “Power of Siberia 2” remains limited so far.

Reuters reported in December 2025 that construction of the new pipeline could take up to 10 years. Meanwhile, the Kremlin has still not finalized an agreement on “Power of Siberia 2” with Beijing.

Russia has been supplying gas from Eastern Siberia to China via the Power of Siberia pipeline since late 2019. As Gazprom reported, last year it reached its design capacity of 38 billion cubic meters per year.

IGU: The Asian gas market will play a central role

According to IGU analysts, the global natural gas market has become more flexible in recent years, allowing the industry to cope with the volatility caused by the blockade of the Strait of Hormuz. Investments in liquefied natural gas (LNG) infrastructure, supply diversification, and flexible trade agreements with suppliers played an important role in this.

Among the key factors driving future gas demand, IGU cites the Asian market, particularly China and India.

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