Russia Expands 'Dark Fleet' to Evade LNG Sanctions

Russia’s push to navigate sanctions and maintain its foothold in the global LNG market is gaining momentum with the deployment of a second vessel from its Arctic LNG 2 project. The tanker, Asya Energy, part of what’s being dubbed a “dark fleet,” recently departed from the sanctioned terminal in northern Russia, signaling Moscow’s continued efforts to circumvent Western restrictions.

This development is similar to its first LNG tanker that was part of the Arctic LNG 2 project, known as the Pioneer. That vessel was last tracked in the Mediterranean. These vessels, reportedly part of a fleet assembled through discreet ownership transfers and minimal transparency, are crucial for Russia’s strategy to sustain LNG exports amid tightening sanctions.

Russia has been expanding its dark fleet of LNG carriers, much like it did with oil tankers following its invasion of Ukraine. The ownership of several ice-class LNG tankers has been transferred to little-known entities, primarily in Dubai’s free trade zones, allowing them to operate under the radar. This strategy enables Russia to continue exporting LNG despite U.S. sanctions and recent EU measures that ban new investments and transshipment operations of Russian LNG.

The sanctions, particularly those delaying the Arctic LNG 2 project and restricting the use of EU territory for transshipments, have driven Russia to employ its shadow fleet more aggressively. With demand for LNG still strong globally, Moscow is betting on these clandestine operations to keep its energy sector afloat.

An analysis earlier this summer conducted by Bloomberg found that little-known shipping firms operating from Dubai’s free trade zone have assumed ownership of at least eight vessels in the earlier part of the year, including four ice-class LNG carriers that had already received Russia’s approval to transverse the Arctic route. Some of the tankers with new ownership do not have listed insurers, according to the analysis—a strong indication of being part of the dark fleet. 

By Julianne Geiger for Oilprice.com

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