The Russian Arctic LNG 2 plant, which is subject to U.S. sanctions, has received a liquefied natural gas tanker for the first time in eight months. The vessel Iris, previously known as North Sky, was moored at the “Utrenny” terminal, according to ship tracking data, reports the Baltimore Chronicle with reference to Bloomberg.
Operations at Arctic LNG 2 were suspended back in October due to new U.S. sanctions and severe ice conditions. However, recent activity at the site indicates a possible resumption of loading operations.
While there is no confirmed information yet on whether the Iris will be loaded with liquefied gas, the vessel is Arc4 ice-class certified, allowing it to travel along the Arctic route toward Asia during the summer. Satellite images from June 25 show that the waters around the terminal remain partially ice-covered. Nevertheless, the port captain of Sabetta has allowed Arc4-class tankers to navigate the area without icebreaker assistance.
Russia, which previously announced its ambition to triple liquefied natural gas exports by 2030, is seeking to maintain its position in the global energy market. Following its full-scale invasion of Ukraine, the U.S. and European countries have actively worked to reduce Kremlin revenues from energy sales. In 2023, Washington sanctioned the Arctic LNG 2 project, along with several associated vessels, including the Iris.
According to Bloomberg, LNG production at Arctic LNG 2 may have resumed as early as May. Satellite images show gas flaring—commonly a sign of active processing operations. Last summer, the plant dispatched eight cargoes through the so-called “shadow fleet,” though most failed to find buyers.
The majority shareholder of Arctic LNG 2 is Novatek PJSC. The Iris is currently en route to the port of Sabetta, which services another LNG project—Yamal LNG—that is not under sanctions. This suggests that the tanker’s route or destination may yet change.
Oil and gas remain the primary sources of revenue for the Russian war budget. Ukrainian President Volodymyr Zelensky has called for the oil price cap on Russian crude to be halved to $30 per barrel. According to the head of the President’s Office, Andriy Yermak, sanctions are already showing impact: the activity of over 340 tankers transporting Russian oil in circumvention of sanctions has dropped by nearly half this month.
Earlier we wrote that Russia’s steel sector in decline.