BRICS is reeling under pressure as the UK has joined the US in tightening Russia’s liquified natural gas (LNG) supply. In a latest turn of events, the UK announced it would stop providing maritime services for Russia’s LNG carriage from 2026.
This puts additional pressure on Russia, which was heavily dependent on the UK’s maritime services for the LNG supply. “Russian liquified natural gas (LNG) is set to face a ban on access to UK maritime services, including insurance and shipping,” read a report from The Independent.
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The restrictions will be introduced in 2026 after consulting other European countries, read the report. The BRICS alliance is hard-pressed as LNG from Russia is available at discounted prices. The sales have now been stalled, forcing them to procure either from the US or from other countries.
“The ban will be phased in over 2026 in lockstep with our European partners,” Britain’s Foreign Office said in a statement. BRICS members China and India were the top buyers of Russia’s LNG, and the US locked them out through further sanctions.
BRICS Can No Longer Milk Russia’s LNG Oil at Cheaper Rates
India’s state-run refiners and privately-owned Reliance Industries are forced to procure oil from other nations. Most importantly, the US and the UK will stop the usage of local currencies in Russia’s LNG procurement. The BRICS members were paying local currencies for Russia’s LNG, sidestepping the US dollar.
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In addition, BRICS members also saved billions in exchange rates while funding Russia’s LNG industry. It was a win-win situation for the alliance as they made use of the White House sanctions. Trump tightened the screws further, and all members agreed to stop purchasing Russian oil.
The BRICS alliance now fears further economic consequences through tariffs if it continues to procure Russia’s LNG. The US, UK, and the West are doing everything possible to stop Russia from further wreaking havoc on Ukraine.