Last week, the UK Government announced it had sanctioned five LNGCs and two entities allegedly operating in the Russian LNG sector.
It is believed to be the first time the UK has used its new ship specification power to target LNGCs directly.
This move boosts the efforts of allies to try to stop Russia’s attempts to bolster its future energy revenues - the most critical source of funding for Putin’s war in Ukraine, the UK’s Foreign, Commonwealth and Development Office (FO) said.
Russia has plans to expand its LNG revenues by aiming to grow its global LNG market share from 8% to 20%.
Earlier this year, the UK sanctioned the Arctic LNG 2 project, alongside the US and EU. Since then, the production facility has been forced to slash production.
The UK has now sanctioned 15 vessels and entities involved in the Russian LNG sector, the Government said.
The LNGCs sanctioned were: ’Pioneer’ (IMO 9256602); ‘Asya Energy’ (IMO 9216298); ’Nova Energy’ (IMO 9324277); ’North Sky’ (IMO 9953523) and the ‘SCF La Perouse’ (IMO 9849887).
Associated with the vessels, the following entities were also sanctioned: Ocean Speedstar Solutions OPC – the operator and manager of ‘Pioneer’ and ‘Asya Energy’ and White Fox Ship Management – the operator and manager of ‘North Sky’.
The FO explained that ships specified under the Russia (Sanctions) (EU Exit) Regulations 2019 are prohibited from entering a UK port, may be given a movement or a port entry direction, can be detained, and will be refused permission to join the UK Ship Register, or have its existing registration terminated, as necessary.
Russian development continues
Meanwhile, Russia is to continue to develop the infrastructure to transport LNG, specifically boosting capacity at Arctic ports and delivering the necessary gas carriers for the projects, President Putin stressed during a plenary session of Russia’s recent Energy Week.
"LNG from Russia's Arctic has become one of the anchor cargoes of the Northern Sea Route (NSR). We will definitely continue to develop our own services and technologies in the LNG sector, as well as create centres for transhipment, storage, and trade of LNG.
“We will deliver gas carriers to projects and of course boost capacity at our Arctic and eastern seaports, as well as strengthen communications and infrastructure of the NSR," Putin said.
He also admitted that there were many problems that will delay LNG projects’ implementation, although despite this, they will be developed, Interfax reported.
Russian LNG exports are forecast to total 35 mill tonnes this year, Russian Deputy Prime Minister Alexander Novak told reporters on the sidelines of the Russian Energy Week.
The country produced 32.9 mill tonnes of LNG in 2023, so the figure could increase by 6.4% this year.
However, the medium-term macroeconomic forecast projected that Russia would produce 38 mill tonnes of LNG in 2024, Interfax said.
In another move, Indian Oil Secretary, Pankaj Jain said late last week that India will not buy LNG produced by Russia's Arctic LNG 2 project, which has been sanctioned by Western countries.
"We will not buy (supply from) Arctic LNG 2. We are not buying any sanctioned commodity. Something which has broad-based sanctions, we are not touching it," Jain told local media.
