The US has taken decisive action against Russia’s liquefied natural gas (LNG) trade, imposing sanctions on seven LNG carriers, including those believed to have loaded at the Arctic LNG 2 project. This swift response, less than a month after the first suspected cargo was loaded, highlights the US’s determination to curb Russia’s energy exports.
According to Bloomberg, these sanctions target Russia’s “shadow fleet” of LNG tankers, vessels with opaque ownership and practices designed to hide their activities. The US, using satellite imagery, identified the ‘Pioneer’ and ‘Asya Energy’ loading at Arctic LNG 2, and has now sanctioned them, alongside other related companies.
Benjamin L. Schmitt, a senior fellow at the University of Pennsylvania, described this as a “massive first step” and unprecedented in its speed. He noted the potential deterrent effect these sanctions could have on other entities considering sending vessels to the plant.
The sanctions also extend to vessels used to move cargoes from the Yamal LNG plant, even though the plant itself is not under sanctions. This move signals the US’s intent to disrupt Russia’s LNG supply chain, even beyond Arctic LNG 2.
Edward Fishman, a senior research scholar at Columbia University, emphasised the significance of these actions, stating, “This is a big deal. It shows the United States isn’t messing around in its goal of squashing Russia’s LNG sector… The U.S. isn’t just targeting facilities — it’s targeting shipments.”
These sanctions represent a significant escalation in the US’s efforts to curtail Russia’s energy exports, and their impact on the global LNG market remains to be seen.
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