U.S. Sanctions Companies & Vessels Linked To Russia’s Arctic LNG 2 Project

The United States has imposed fresh sanctions on two firms and two vessels involved in Russia’s Arctic LNG 2 project.

The U.S. Treasury Department has targeted Gotik Energy Shipping Co, Plio Energy Cargo Shipping, and LNG carriers New Energy and Energy Mulan.

New Energy faced criticism for using deceptive shipping methods to transport cargo from Arctic LNG 2.

On August 25, 2024, the vessel was involved in a ship-to-ship transfer with the sanctioned vessel Pioneer, with cargo from the controversial Arctic LNG 2 project.

Arctic LNG 2, owned by Russia’s Novotek, was set to become Russia’s largest liquified natural gas (LNG) facility, with an estimated annual production of 19.8 million metric tons.

However, due to the sanctions, the project’s future is uncertain since Novotek may experience difficulties expanding its operations.

The U.S. State Department has reiterated its commitment to disrupting any effort to make Arctic LNG 2 fully operational. Assistant Secretary Geoffrey R. Pyatt stated that the new set of sanctions strengthens the earlier measures and aims to restrict Russia’s LNG capabilities further.

With the newest set of sanctions, the U.S. has frozen the assets of New Energy and Energy Mulan and prohibited U.S. firms from dealing with them.

Despite these measures, Russia has managed to keep some parts of the project functioning with the shadow fleet, including New Energy, which is still operational.

However, experts like Mehdy Touil from Calypso Commodities warn that LNG’s specific limitations make it difficult to continue oil smuggling operations.

The fate of the Arctic LNG 2 Project remains uncertain as the U.S. increases its sanctions. The shadow fleet’s small size makes it an easy target for further evaluation and enforcement by U.S. authorities.

Reference: Reuters, Bloomberg

U.S. Sanctions Companies & Vessels Linked To Russia’s Arctic LNG 2 Project appeared first on Marine Insight – The Maritime Industry Guide

Source: Maritime Shipping News