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Russia fails to get new vessels for Arctic LNG project due to US sanctions

Russia fails to get new vessels for Arctic LNG project due to US sanctions Photo: Russia unable to receive vessels for Arctic LNG-2 project due to US sanctions (Getty Images)

The delivery of specialized vessels to the new Russian plant for the production of liquefied natural gas Arctic LNG-2 is disrupted due to US sanctions, reports Bloomberg.

A Japanese shipping line can no longer charter three LNG icebreakers for the Arctic LNG-2 project because of US restrictions, and attempts to sell them could prove difficult.

Sanctions have already brought results

The launch of the plant, a key enterprise for Russia, has been disrupted by US measures as Washington penalizes Russia for its war against Ukraine.

Operator Novatek PJSC planned to use the vessels to pick up fuel from the site, but without them, it is going to be difficult to work at the design capacity.

"Novatek" has already postponed the facility’s maiden voyage, and is struggling to find buyers.

Japan wants to solve problem

The president of Japan's Mitsui OSK Lines Ltd., Takeshi Hashimoto, said that their contractual obligation is that if they cannot provide Arctic LNG-2 services, they must sell their Arctic LNG-2 vessel.

"There is a sanction that says we should not do that deal with Arctic (the Arctic LNG-2 project - ed.). So it’s a bit complicated," he stated.

According to Hashimoto, one firm is working with the US and Japanese governments to find a solution. The construction of the first of three gas-carrying icebreakers will be completed this year.

US sanctions against Arctic LNG-2

On November 2, the Arctic LNG 2 project was added to the US sanctions list regarding the production and export opportunities of Russia in the field of energy.

US Assistant Secretary of State for Energy Jeffrey Payette admitted the goal of Washington being to "kill" the Russian gas project Arctic LNG 2.

Bloomberg wrote that the start of gas deliveries from the newest Russian Arctic LNG-2 will be delayed after the company declared force majeure due to US sanctions.