Russian liquefied natural gas producer Novatek has slashed the prices of its cargoes by 30% to 40% since August to entice Chinese buyers to purchase sanctioned gas from its Arctic LNG 2 project, sources familiar with the matter told Reuters.

The purchases have ended the commercial limbo for the $21-billion project, which is subject to some of the harshest sanctions the U.S. and Europe have imposed on Russia. Washington is seeking to block the flow of oil and gas revenue to Kremlin coffers as U.S. President Donald Trump ratchets up pressure on Moscow to end its war in Ukraine. The White House has also threatened action against countries that continue to buy Russian energy exports.

But China, a longtime ally of Russian President Vladimir Putin, opposes Western sanctions. Cracking down on C

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