Russian Arctic LNG 2 Project Partners are Sanction Targets

November 4, 2024

The United States has imposed sanctions on hundreds of entities and individuals for supporting Russia's war effort in Ukraine, including companies supporting the development of Russia's Arctic LNG 2 project and its shipment of liquefied natural gas (LNG), as well as other future energy projects.

The Arctic LNG 2 project by Russia's Novatek is subject to Western sanctions over Russia's conflict with Ukraine. The project had been due to become Russia's largest LNG plant with eventual output of 19.8 million metric tons per year of LNG from three trains.

Below are the companies designated by the U.S. state department, as well as the vessels they own or manage, according to data from Equasis and Kpler:

Copyright GT
Copyright GT

Shipping Companies that Loaded and Transported LNG from Arctic LNG2 [Company name, Location, Ship Name, IMO Number]

Ocean Speedstar Solutions OPC Private Limited, Mumbai, India
Ship/commercial manager for:
- Pioneer, 9256602
- Asya Energy, 9216298
- Everest Energy, 9243148    

Zara Shipholding Co
C/O: Ocean Speedstar Solutions (OPC) Pvt Ltd, Mumbai, India
Registered owner for:
- Pioneer, 9256602    

Gotik Energy Shipping Co
C/O: Plio Energy Cargo Shipping, Mumbai, India
Registered owner for:
- New Energy, 9324277    

Plio Energy Cargo Shipping OPC Private Limited
Mumbai, India
Ship/commercial manager for:
- New Energy, 9324277



The U.S. state department said on Aug. 24 the Pioneer and Asya Energy vessels had entered Russian waters in late July, and had shut off and manipulated their automatic identification system (AIS) to broadcast false locations.

While producing a false AIS signature, Pioneer and Asya Energy loaded LNG from the Arctic LNG 2 facility on Aug. 1-3 and 9-11 respectively, said the state department, citing commercial satellite imagery.

Ocean Speedstar Solutions and Zara Shipholding did not immediately respond to a request for comment.

In another round of sanctions on Sept. 5, the U.S. state department said New Energy used deceptive shipping practices, including shutting off its AIS, to load cargo from Arctic LNG 2 via a ship-to-ship transfer with the Pioneer vessel on Aug. 25.  

Reuters could not find contact information for Plio and Gotik.


Targeting Russia's Procurement of LNG Tankers [Company name, Location, Ship Name, IMO Number]

White Fox Ship Management FZCO 
Dubai, United Arab Emirates
Ship/commercial manager for:
- North Way, 9953535
- North Air, 9953509
- North Mountain, 9953511
- North Sky, 9953523                


The four vessels have transshipped LNG from Russia's Yamal LNG project despite being originally intended for Arctic LNG 2 use, said the U.S. state department, adding that it is committed to blocking the expansion of Russia's existing LNG fleet.      

"Further, this transshipment of LNG by vessels with obfuscated ownership could eventually help Russia circumvent EU restrictions prohibiting the transshipment of Russian-origin LNG through European ports," it said.

Reuters could not find contact information for White Fox Ship Management.


In its latest round of sanctions announced on Oct. 30, the state department targeted several more entities which are the registered owners of those four vessels.

LNG Alpha Shipping
- Dubai, United Arab Emirates
- Majority owned by New Transshipment FZE
Registered owner for:
- North Air, 9953509      

LNG Beta Shipping
- Dubai, United Arab Emirates
- Majority owned by New Transshipment FZE
Registered owner for:
- North Mountain, 9953511

LNG Delta Shipping
- Dubai, United Arab Emirates
- Majority owned by New Transshipment FZE
Registered owner for:
- North Way, 9953535

LNG Gamma Shipping
- Dubai, United Arab Emirates
- Majority owned by New Transshipment FZE
Registered owner for:
- North Sky, 9953523

New Transshipment FZE
- A subsidiary of Novatek, based in the United Arab Emirates


Reuters could not find contact information for LNG Alpha, Beta, Delta and Gamma Shipping. Novatek did not immediately respond to a request for comment regarding New Transshipment FZE.

The state department also targeted Novatek China Holdings Co Ltd, a China-based firm established in August 2023 to market LNG from Arctic LNG 2.    

It also designated Russian construction firm Limited Liability Company Ekropromstroy used as a special purpose vehicle to sell equity stakes in Arctic LNG 2, and UAE-based Waterfall Engineering that provided parts to Arctic LNG 2 in 2023.

In its Oct. 30 announcement, the state department designated Smart Solutions Ltd for providing various gravity-based structure parts to Arctic LNG 2. The company also chartered vessels that delivered liquefaction modules and other materials to the LNG project.

The United States in addition designated several Russian-based companies involved in the development of the future Yakutia LNG project, one of the largest prospective LNG production projects in Russia. They include LLC Power of Yakutia, LLC Yakutstroiproekt and LLC Liquefied Natural Gas Yakutia.

(Reuters)


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