Further Sanctions to Degrade Russia’s Ability to Operationalize the Arctic LNG 2 Project
Press Statement
Matthew Miller, Department Spokesperson
September 5, 2024
In response to Russia’s continued war of aggression against Ukraine, the United States is imposing further costs on those supporting Russia’s war effort and attempting to expand Russia’s global energy leverage.
In today’s actions, the Department of State is targeting two entities and two vessels connected to attempts to export liquefied natural gas (LNG) from the U.S.-sanctioned Arctic LNG 2 project. The Department is sanctioning Gotik Energy Shipping Co (Gotik) and Plio Energy Cargo Shipping OPC PVT LTD (Plio Energy). Gotik and Plio Energy are the registered owner and commercial manager, respectively, of the LNG carrier (LNG/C) New Energy. LNG/C New Energy used deceptive shipping practices, including shutting off its automatic identification system,...
Building on several other rounds of designations in connection with the Arctic LNG 2 project,* this designation demonstrates a willingness to sanction third country companies for dealings with the project merely for making purchases. In this case, the State Department reports that the transactions at issue were "deceptive" in nature, this taking this outside the scope of the "pure de facto secondary sanctions" actions described in Introductory Note Common to all Derivative Designation Notices ("De Facto" Secondary Sanctions) Included in the Research System (System Ed. Note), but the State Department may well have made these designations even if the transaction were above board.
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See New Measures to Degrade Russia’s Wartime Economy (State Fact Sheet), Taking Additional Measures to Degrade Russia’s Wartime Economy and Imposing Further Sanctions in Response...