For the first time since the beginning of the full-scale invasion of the Russian Federation into Ukraine, the United States added Russian liquefied gas to the sanctions list.
New sanctions on Russian LNG
The FT reports that the US targets Russia's ability to export liquefied natural gas for the first time. That could cause disruptions in global energy markets that Washington has tried to avoid.
European countries continued to import Russian LNG even after the full-scale invasion of Ukraine by the Russian Federation, and the US tried to avoid interrupting the flow in order not to pressure its allies.
However, in early November, the US State Department announced sanctions against a new Russian project known as Arctic LNG 2, effectively blocking European and Asian countries from buying the project's gas.
US officials have acknowledged that the new sanctions were intended to hurt Russia's ability to profit from selling more fossil fuels.
We have no strategic interest in reducing global energy supplies, which would raise energy prices around the world and increase Vladimir Putin's profits. We, as well as our allies and partners, however, share a great interest in reducing Russia's status as a leading supplier of energy, the State Department said.
What is known about the Russian Arctic LNG 2
The FT notes that Arctic LNG 2 is located on the Hydan Peninsula in the Arctic, allowing gas to be exported to European and Asian markets.
It will be Russia's third large-scale LNG project, supporting the Kremlin's ambitions to become a leading exporter in this field.
Arctic LNG 2 is headed by the Russian private company Novatek, which owns 60% of the shares.
Other shareholders include France's TotalEnergies, two Chinese state-owned companies, Japan's Mitsui & Co and government-backed Jogmec, each with a 10% stake.
