UK follows in US steps with fresh sanctions against five LNG carriers
Sanctions targeted four LNG carriers and two companies recently blocked by the US, and one LNG carrier that was managed by Sovcomflot until two weeks ago
The UK is moving in lockstep with the US as the allies push to choke off Russia’s flagship Arctic LNG 2 project. On Wednesday, the UK announced sanctions against five LNG carriers linked with the project, four of the which were recently targeted by the US
THE UK announced sanctions against five liquefied natural gas carriers and two shipping companies linked with Russia’s Arctic LNG 2 project on Thursday, mirroring recent actions taken by the US.
The move marks the first time the UK has sanctioned LNG carriers and comes amid a concerted effort by Western allies to stymie Russia’s flagship LNG project that has thus far bore some success.
Four of the ships sanctioned on Thursday — Pioneer (IMO: 9256602), Asya Energy (IMO: 9216298), Nova Energy (IMO: 9324277), North Sky (IMO: 9953523) — were designated during the past two months by the US, as were the two companies targeted by the UK, Ocean Speedstar Solutions and White Fox Ship Management.
The fifth LNG carrier sanctioned on Thursday, Barbados-flagged La Perouse (IMO: 9849887), is not under US sanctions. Lloyd’s List Intelligence data shows it was managed by UAE-based Sovcomflot entity Gas Carriers (SCF) Management – FZCO, until about two weeks ago, when it changed name, management and service providers.
The vessel’s name changed from SCF La Perouse, flag from Gabon to Barbados, registered ownership to a Seychelles-based company, and management to a different UAE-based company, according to LLI and Equasis shipping databases.
Measures against Arctic LNG 2 have been building up since late last year, with the US, UK, and EU imposing sanctions on the project as part of a broader goal of choking Russia’s future energy exports.
“Today’s action builds on efforts alongside allies to bear down on Russia’s attempts to bolster its future energy revenues — the most critical source of funding for Putin’s war in Ukraine,” the UK said in a statement.
Touted as Russia’s flagship energy project, Arctic LNG 2 began production in December, but did not export its first cargo until August as Western sanctions kept foreign companies away and halted the delivery of specialised, ice-ready LNG carriers.
The third cargo loaded in the heavily sanctioned project was offloaded onto a floating storage unit earlier this month, a further sign that Western sanctions have managed to hobble Moscow’s plans to increase its LNG exports and market share, at least for now.
Price cap focus
Earlier this week, officials from EU member states and a “broad coalition of international partners” from a dozen countries met under the fourth Sanctions Coordinators Forum, which was “closely coordinated with our US and UK partners,” the EU Commission said in a statement on Monday.
The forum discussed strengthening the enforcement of the price cap on Russian oil and refined products, and “targeting of the ‘shadow fleet’, thereby squeezing Russian oil revenues used to finance its illegal war”.
“The importance of dialogue and action, including vis-à-vis our own operators, was an overarching theme,” the statement read.
EU sanctions envoy David O’Sullivan stated that sanctions against Russia are having an impact, as evidenced by “reduced trade flows to an even more vigorous compliance of our operators”.
“At the same time, there is more that needs to be done and relentless enforcement is where we all should focus on now,” he said.
* Lloyd’s List defines a tanker as part of the dark fleet if it is aged 15 years or over, anonymously owned and/or has a corporate structure designed to obfuscate beneficial ownership discovery, solely deployed in sanctioned oil trades, and engaged in one or more of the deceptive shipping practices outlined in US State Department guidance issued in May 2020. The figures exclude tankers tracked to government-controlled shipping entities such as Russia’s Sovcomflot, or Iran’s National Iranian Tanker Co, and those already sanctioned.
Download our explainer on the different risk profiles of the dark fleet here
