EU Sanctions First LNG Carrier Linked To Russia’s Yamal LNG Project

The European Union has introduced its 15th round of sanctions against Russia. But it is the first time that the EU has sanctioned a vessel directly linked to Russia’s Yamal LNG project, one of the country’s major liquefied natural gas operations.

The sanctioned vessel, Christophe de Margerie, is an ice-capable tanker that has been part of the Yamal LNG fleet since its launch.

This vessel, which is named after the former CEO of TotalEnergies, was one of 15 specially designed Arc7 ice-class carriers built for transporting LNG from Russia’s Yamal Peninsula.

The tanker, although still operated by Russia’s Sovcomflot, is now owned by Zelitiko Shipping, a company based in the UAE to evade the Western sanctions.

Since the project began operations in 2017, it has delivered around 100 million tons of LNG to Europe. Previous rounds of sanctions targeted Russia’s LNG sector, but until now, no LNG carriers involved with Yamal LNG had been included in the sanctions growing list.

The EU is expected to expand these measures, by increasing the list in the 16th sanctions package set to be announced in January 2025.

The sanction on Christophe de Margerie will prevent it from participating in LNG shipments from Yamal LNG. The vessel had already faced difficulties in maintenance services, as Western shipyards refused to work on it.

The new sanctions will make it harder for the tanker to find buyers, even outside the EU. A major impact of the EU sanctions will come with the ban on transhipping Russian LNG by March 2025.

This will prevent Russian LNG from being transferred from ice-capable carriers like Christophe de Margerie to conventional tankers at EU terminals, like Zeebrugge in Belgium and Montoir in France.

Without these transhipment options, the ice-capable fleet will have to face longer sailing distances or rely on ship-to-ship transfers outside the EU.

The new sanctions also target Russia’s shadow fleet, a group of vessels suspected of evading Western sanctions by transporting oil, military supplies, and stolen Ukrainian grain.

The EU has added 52 new vessels to its sanctions list, bringing the total to 79.

These ships, which are often involved in illegal or unregulated trade, have been a major target for the EU as it seeks to limit Russia’s maritime activities.

Four other LNG carriers connected to Russia’s Arctic LNG 2 project are also included in the new sanctions. These vessels namely North Air, North Mountain, North Sky, and North Way-are owned by UAE-based companies and operated by firms in Singapore.

These ships were previously sanctioned by the U.S. for their involvement in Russia’s shadow fleet activities.

EU also sanctioned Chinese firms accused of supplying components to the Russian military including seven individuals and companies for the first time.

The EU’s sanctions are not limited to ships alone. The package also includes new restrictions on Russian defence companies and individuals involved in Russia’s energy sector.

Additionally, the EU has introduced financial measures to protect European businesses facing legal challenges related to Russian entities. The EU has made it clear that it will continue to target Russia’s maritime sector to disrupt its energy exports, especially LNG.

Reference: Reuters

Source: Maritime Shipping News