On Thursday, the U.S. announced new sanctions targeting two companies and two ships linked to Russia's Arctic LNG 2 project.

The Arctic LNG 2 project is a major infrastructure development in Russia, poised to become the country’s largest facility for producing liquefied natural gas (LNG). The project is 60% owned by Novatek, a major Russian energy company. When fully operational, Arctic LNG 2 is expected to significantly boost Russia’s LNG production capacity.

This ambitious project involves the construction of a large plant designed to produce up to 19.8 million metric tons of LNG per year. The plant’s production capacity will be achieved through the use of three separate production units, known as "trains." Each train is essentially a processing unit where natural gas is cooled and converted into its liquid form, which is then easier to transport and store.

The decision to build Arctic LNG 2 in the Arctic region is driven by the vast natural gas reserves located there. By developing this project, Russia aims to tap into these reserves and enhance its position in the global LNG market

However, Novatek might have to reduce the scope of the Arctic LNG 2 project because of these new sanctions and previous ones imposed by the U.S. in August.

Gotik Energy Shipping Co. and Plio Energy Cargo Shipping are the two companies that are now under sanctions from the U.S. Treasury. According to the Treasury, Gotik Energy Shipping Co owns the LNG carrier ship named New Energy, while Plio Energy Cargo Shipping is responsible for managing this ship.

The U.S. State Department has accused the New Energy ship of using dishonest shipping practices. Specifically, it allegedly turned off its tracking system to secretly load LNG from the Arctic LNG 2 project, despite U.S. sanctions. This transfer occurred on August 25, 2024, with another ship named Pioneer, which had already been sanctioned by the U.S. earlier in August.

These actions indicate that Russia might still be managing to export some LNG from the Arctic LNG 2 project, despite the sanctions.

The U.S. Treasury has also added the New Energy ship and another vessel called Energy Mulan, which is managed by Plio Energy, to its sanctions list. This means that their assets are now blocked, and U.S. citizens and companies are forbidden from conducting any business with them.

Matthew Miller, a spokesperson for the U.S. State Department, stated, "The U.S. government will continue to respond quickly to any efforts to operate the sanctioned Arctic LNG 2 project or expand Russia's energy capabilities." This shows that the U.S. is committed to taking strong actions against any attempts by Russia to continue or expand its energy projects despite the sanctions.