Russia expands ‘dark fleet’ to avoid 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, which is part of what is being called 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 Pioneer. That ship was last tracked in the Mediterranean. These vessels, which appear to be part of a fleet assembled through discreet ownership transfers and minimal transparency, are crucial to Russia’s strategy to prop up LNG exports amid tightening sanctions.

Russia expanded its dark fleet of LNG carriers, as it did with oil tankers after its invasion of Ukraine. Ownership of several ice-class LNG tankers has been transferred to little-known entities, mainly in Dubai’s free zones, allowing them to operate under the radar. This strategy allows Russia to continue exporting LNG despite US sanctions and recent EU measures banning new investments and transshipment operations of Russian LNG.

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

An analysis earlier this summer by Bloomberg found that little-known shipping firms operating out of Dubai’s free trade zone took ownership of at least eight vessels in the first part of the year, including four LNG carriers in the ices that had already received Russian approval. to cross the arctic route. According to the analysis, some of the newly owned tankers have no insurers listed, a strong indication that they are part of the dark fleet.

By Julianne Geiger for Oilprice.com

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