In a surprising escalation of its punitive measures against Russia, the European Union announced its 17th sanctions package yesterday (May 20, 2025), which notably includes a significant tightening of restrictions on Russia’s liquefied natural gas (LNG) sector, reports gCaptain.
Direct Impact
Newly operational vessels, designed for Arctic conditions, which recently entered service carrying cargo for a major Russian LNG project, are now facing significant challenges. Three of these vessels have been directly impacted by recent EU sanctions, while a fourth in the same series appears to have escaped immediate sanction, possibly due to not yet carrying Russian gas. This unaffected vessel is currently en route from its South Korean shipyard to Russia’s Arctic region.
The EU sanctions will pose considerable difficulties for the Russian LNG producer. The company had recently begun utilizing these specialized vessels to receive cargoes via ship-to-ship (STS) transfers at an anchorage near Murmansk. This new transshipment method became necessary after a ban on such transfers in EU ports took effect on March 26, 2025. The sanctioned vessels also possess ice-class designations, crucial for navigating to the LNG plant during early summer and early winter when Arctic waters remain ice-covered. These new EU sanctions will further complicate the Russian producer’s ability to export its cargoes to distant markets, such as China.
First Instance
All three of the now-sanctioned vessels delivered cargoes to China in recent weeks. One of them received LNG in an STS transfer near Murmansk on May 16.
It remains uncertain whether the EU sanctions, which take effect on May 21, include a wind-down period for delivering cargoes already en route. Queries to the company involved in operating these vessels regarding their intent to offload them from their portfolio have not yet received an immediate reply. The four vessels, built by a South Korean shipyard, represent a substantial investment of approximately $1 billion.
This marks the first instance where EU sanctions against LNG carriers have surpassed US measures. The EU justified its sanctions by stating that the vessels “are operated in such a way as to contribute or support actions or policies for the exploitation, development or expansion of the energy sector in Russia, including energy infrastructure.”
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Source: gCaptain
