The US continues its pressure on Russian LNG. New sanctions and their consequences

The United States does not intend to give up pressure on the Russian LNG sector. The latest sanction package, announced by the U.S. State Department, covers about one percent of the global LNG fleet. The aim is to further weaken the Russian energy sector, including the key Arctic LNG 2 project, managed by the private gas company Novatek.

Every attempt to launch the Arctic LNG 2 project meets with an immediate response from the American government.A similar approach is applied to allattempts to increase Russian energy production and export capacity. The speed with which the United States introduces new sanctions has increased markedly. The last steps were taken only three weeks after Russia started forCargo LNG as part of the Arctic LNG 2 project, using ships from "shadow float".

The new sanctions may also indirectly affect deliveries from Jamal LNG, a project which has not yet been subject to restrictions. Such a move could significantly extend the scope of American activities that have so far focused on future Russian capabilities in the LNG sector.

Experts note that Novatek, the operator of Jamał LNG, will try to protect this most profitable project.Nevertheless, time for the original Novatek projectIt may be limited. The new sanctions included seven LNG gas carriers, including four newly built in 2024 – North Air, North Mountain, North Sky and North Way – and their Dubai operator. One of those ships,North Sky, has recently loaded LNG from Jamał LNG, but the sanctions imposed have effectively "poisoned" its cargo, meaning that any buyer of this cargo will be exposed to secondary sanctions.

CurrentlyNorth SkyIt flows near South Korea, but its ultimate goal remains unknown. New sanctions block these units from being re-wrapped into the LNG Jamal, which limits Novatek's transport capacity. The four sanctioned ships have an arc4 ice classification, which is crucial for operations in the Arctic winter conditions. Their loss will further complicate the company's winter activities, especially since other ships capable of working in the ice are still waiting for delivery from the South Korean shipyard, delayed due to previous sanctions.

In response, Novatek can increasingly use transfers between ships (STS) to maximise its ice fleet and hide the origin of the sanctioned cargo. The first such transfer of STS took place last weekend.

American sanctions have a wide range and do not only concern Arctic LNG 2.Russia is losing globalenergy impacts and the international response is decisive. Cooperation with the G7 Group and other allies continues so that Russia can no longer use its energy resources for political purposes.

Written by MD