US Imposes Sanctions on Vessels Connected to Russia’s Arctic Operations

The U.S. government has imposed sanctions on two companies and two vessels associated with Russia’s Arctic LNG 2 project as a response to Moscow’s invasion of Ukraine. The project, majority-owned by Russia’s Novatek, was set to become the country’s largest liquefied natural gas plant, with a projected annual output of 19.8 million metric tons. However, Novatek may be forced to scale back the project due to the impact of U.S. sanctions, which have been imposed since August.

The U.S. Treasury announced sanctions on Gotik Energy Shipping Co and Plio Energy Cargo Shipping, both linked to the liquefied natural gas carrier New Energy. The State Department revealed that New Energy engaged in deceptive shipping practices, including turning off its automatic identification system to load cargo from the U.S.-sanctioned Arctic LNG 2 project through a ship-to-ship transfer with the vessel Pioneer. Despite these sanctions, Moscow has found ways to continue some exports from the project.

In response to these actions, the U.S. Treasury added New Energy and another vessel managed by Plio, Energy Mulan, to its designated list, effectively blocking their assets and prohibiting U.S. individuals from engaging with them. The State Department emphasized its commitment to swiftly respond to any attempts to advance the sanctioned Arctic LNG 2 project or expand Russia’s energy capabilities. Contact information for Plio and Gotik was not immediately available.

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