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Russian vessels that are part of the the country's so called "shadow fleet" have been renamed and reregistered in what is seen a sanctions-busting move to transport liquefied natural gas (LNG) from a facility in the Arctic, it has been reported. The Arctic-LNG 2 project on the shores of the Gulf of Ob opposite the Yamal Peninsula in Russia's far north was targeted by tough U.S.-led sanctions under the previous Biden administration following President Vladimir Putin's full-scale invasion of Ukraine. But last summer, LNG carriers traveling to Arctic LNG 2, which is run by Russia's energy giant Novatek, deactivated or spoofed their locations to allow shipments, according to maritime outlet Gcaptain.com.
Last month, four LNG carriers were reflagged from Panama to Russia and their names were changed, the outlet reported. Malte Humpert, senior fellow at the Arctic Institute, told Newsweek this was intended as a sanctions-busting move and with the LNG from the site intended mostly for Asia, China was less concerned about secondary sanctions under the Trump administration. Newsweek has contacted Novatek for comment.
This illustrative image from March 10, 2022, shows the LNG (Liquefied natural gas) tanker Rudolf Samoylovich, sailing under the flag of Bahamas, near Saint-Nazaire, western France. This illustrative image from March 10, 2022, shows the LNG (Liquefied natural gas) tanker Rudolf Samoylovich, sailing under the flag of Bahamas, near Saint-Nazaire, western France. Why It Matters As major generators of Russia's export revenues, oil and natural gas have been the focus of western-led sanctions to choke Moscow's war machine.
However, Russia has set up a shadow fleet of vessels to circumvent a $60 price cap on seaborne oil and the export continues to swell the Kremlin's coffers. Russia's piped natural gas industry has been hit hard by the war. But seaborne LNG exports from Russia to the EU are on the rise and Russian-built carriers are becoming an increasingly important part of the shadow fleet.
What To Know GCaptain reported that in the middle of April, the vessels North Sky, North Air, North Mountain, and North Way were renamed Iris, Buran, Voskhod, and Zarya and their registration was changed from Panama to Russia. Launched in 2023 and 2024, the vessels were transferred to Dubai-based White Fox Ship Management, and all were included in the August 2024 round of economic sanctions by the U.S. Last summer, LNG carriers traveling to the sanctioned Arctic LNG 2 project deactivated or spoofed their location, and last month's renaming and reflagging are likely to signal a repeat of this practice this year, Humpert said. He said the sanctions environment has changed since last year when the former Biden administration was on top of trying to interdict LNG exports from Arctic LNG 2, which was primarily designed to supply Asian markets unlike Novatek's unsanctioned Yamal LNG, which is increasing supplies to Europe.
Humpert added that under the Trump administration, less personal attention is being paid to this, especially with the loss of State Department employees with expertise and now Chinese buyers will be less concerned about facing secondary sanctions. It comes as a study published by the Ukrainian campaign group Razom We Stand found the EU can cut its remaining reliance on Russian gas given the right political will. The report released this week said that Europe had the technology and the tools to break free from Russian LNG, as an increasing shift away from fossil fuel generation and an increase in use of renewable energy.
Svitlana Romanko, Razom We Stand founder, said in a statement to Newsweek that Russian gas revenues are still fueling destruction and death in Ukraine, despite pledges of support from Europe's leaders. She said that the RePower EU road map pledging to end dependency on Russian fossil fuels by 2030 set to come into force will play a key part in peace and security for Ukraine and Europe. What People Are Saying Malte Humpert, Arctic Institute, "The sanctions environment has probably changed compared to last year when the Biden administration was really on top of trying to interdict Russian LNG exports from Arctic LNG 2."
Svitlana Romanko, Founder and Executive Director of Razom We Stand: "Europe finally has the technology and the knowledge to cut ties with Russian gas. What it lacks is the political determination to act." What Happens Nest Production levels at Arctic-LNG 2 are on the up with gas flaring continuing last month and there is the prospect of new shipments this summer they would rely on the four renamed vessels.
However, GCaptain reported Novatek may continue to struggle finding buyers or find new ways to obscure the origin of sanctioned cargoes,
