The U.S. has imposed sanctions on two Indian shipping companies for their alleged involvement in the “Arctic LNG-2” project by Russia’s NOVATEK . These measures are part of broader efforts to limit the export of liquefied natural gas (LNG) from Russia amid increased sanctions pressure on the Russian economy.
The U.S. Treasury Department’s statement mentions the freezing of assets of Gotik Shipping Co and Plio Energy Cargo Shipping in the U.S., along with a ban on any business dealings between American citizens or organizations with these companies. However, the Treasury has permitted certain operations with LNG tankers until November 6, 2024, to ensure the safety of crews and vessels.
The U.S. administration has decided to sanction Gotik Shipping Co and Plio Energy Cargo Shipping for their alleged involvement in the “Arctic LNG-2” project by Russia’s NOVATEK. This measure is part of broader efforts to curb the export of liquefied natural gas (LNG) from Russia, as sanctions against the Russian economy continue to tighten. The U.S. Treasury Department has released further details on the new restrictions.
According to the information provided, the sanctions include freezing the assets of these companies in the U.S. and prohibiting American citizens and companies from conducting any business with them. However, the U.S. Treasury’s general license allows specific operations involving LNG tankers owned by these Indian companies until November 6, 2024.
The license specifies that operations necessary for the safety of crews and vessels are permitted, including medical assistance, docking, repairs, and other essential services to keep the ships in operational condition.
It is important to note that individuals and organizations are prohibited from entering into new commercial contracts involving the sanctioned tankers. Any operations related to unloading cargo, including Russian-origin LNG, are also banned except in emergencies.
Sanctions against Indian companies are part of the broader U.S. campaign against Russian LNG projects. In November 2023, Washington imposed sanctions directly on the “Arctic LNG-2” project, followed by sanctions in December of the same year against several Russian enterprises involved in LNG equipment manufacturing. Measures have also been taken to block LNG tankers suspected of being used to bypass sanctions.
At the same time, the European Union is also planning to impose restrictions on the transit of Russian LNG through its ports. These measures are expected to take effect in the spring of 2025 and will include a ban on investments, the supply of goods, and services necessary to complete LNG projects in Russia, such as “Arctic LNG-2” and “Murmansk LNG.”
The inclusion of Indian shipping companies in the sanctions list could significantly impact their operations, especially considering India’s strong economic ties with Russia.
New Delhi has maintained active cooperation with Moscow for many years, particularly in the energy sector. U.S. restrictions could jeopardize Indian companies involved in the logistics chains for delivering Russian energy products, which may affect the dynamics of bilateral trade relations.
Amidst global political tensions, the Indian government may face a tough decision: continue its cooperation with Russia or consider the potential consequences of worsening relations with the West.
© 2024, GDC. © GDC and www.globaldefensecorp.com. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to www.globaldefensecorp.com with appropriate and specific direction to the original content.
Be the first to comment