Sanctions by the EU and the US and other partners against Ukraine forced the aggressor country Russia to halt most of the work at the world's largest liquefied gas production plant near Murmansk.
Points of attention
- EU and US sanctions have effectively halted Russia's most promising gas project in the Arctic, the Arctic LNG 2 plant.
- Lack of technology, equipment, and cooperation from shipbuilding companies have led to the collapse of the project, impacting Russia's energy sector.
- Sanctions have caused a shortage of icebreakers and gas tankers needed for gas transportation, further complicating Russia's gas production in the Arctic.
- The suspension of gas production in the Arctic due to Western sanctions has significant economic and geopolitical implications for Russia.
- The impact of sanctions on Russian LNG projects highlights the vulnerability of the country's energy sector to international pressures.
What is known about Russia's suspension of gas production in the Arctic due to sanctions?
It is noted that the Arctic LNG 2 project was to become the most promising for the Russian gas industry.
The shipyard in the village of Bilokamyanka, where about 15,000 people worked until recently, is currently in a neglected state.
Most contractors left the site, and work almost completely stopped.
A year ago, Kremlin dictator Vladimir Putin and Novatek CEO Leonid Mikhelson boasted about the prospects of a cutting-edge facility for global industry.
However, EU and US sanctions blocked the aggressor country's access to the necessary technologies and equipment.
The Arctic LNG 2 plant was supposed to process gas from Western Siberian fields and export it to Asia. Russia managed to build two of the three planned platforms, but they never came into operation. The third platform, according to experts, is unlikely to be completed at all.
How Western sanctions destroyed Russia's most promising gas project
Sanctions have caused another critical problem for Novatek — a shortage of icebreakers and gas tankers needed to transport liquefied gas.
Shipbuilding companies refuse to cooperate with Russia, fearing sanctions pressure.
Another serious blow was India's decision to announce that it would not buy gas from Arctic LNG 2. However, the country still receives some Russian supplies, such as oil from Rosneft 2.
According to analysts, sanctions against Russian LNG projects have become one of the most effective measures aimed at Russia's energy sector. Their impact has already led to the halting of major projects that the Kremlin viewed as strategically important for the country's economy.
