Russia Mobilizes Shadow Fleet to Restart Arctic LNG 2 Exports Amid Sanctions

Russia is attempting to revive its liquefied natural gas (LNG) exports from the Arctic LNG 2 terminal after production was halted due to U.S. sanctions and icy conditions in late 2024. Bloomberg and satellite tracking indicate that an LNG carrier has docked at the terminal for the first time since October 2024, with at least 13 vessels—including ice-class LNG carriers capable of navigating frozen waters—mobilized to support operations. Several vessels have changed management companies multiple times to obscure true ownership, reflecting efforts to circumvent sanctions imposed by the Biden administration in 2024. Despite the expanded "shadow fleet" and ongoing attempts to find buyers in markets like China and India, the success of these efforts remains uncertain due to the risk of sanctions violations. Malte Humpert, founder of the Arctic Institute, noted that Russia now has more vessels at its disposal than in 2024 and that this fleet could be sufficient to transport cargoes if buyers are found. An increase in Russian LNG exports could put downward pressure on global gas prices, benefiting consumers, but the future enforcement stance of the Trump administration on these sanctions is still unclear.