New US Sanctions Target Arctic LNG

In its latest round of sanctions, the US went after Singaporean transport operator Red Box. The company, which violated Western sanctions, continued to transport liquefied natural gas modules from China to Russia during 2023 and 2024. The new measures also target vessels working for Rosneft’s Vostok Oil project.

The US sanctions rain targeting Novatek’s Arctic LNG 2 project continues. Just months after blocking the Arc7 ice-class liquefied natural gas (LNG) carriers, the US has targeted Novatek’s ability to complete the project and build future LNG facilities.

As part of the State Department’s sweeping new measures, Singapore-based shipping operator Red Box was sanctioned.

Red Box’s heavy lift vessels Audax and Pugnax had repeatedly violated sanctions by transporting prefabricated LNG modules from China to Russia. During this time, the company’s ships completed five voyages carrying the modules, including a two-month-long voyage along the frozen North Sea Route this winter

The State Department’s announcement states that sanctions were imposed on Red Box for “providing material support, sponsorship or financial, material or technological support or goods or services to Arctic LNG 2”.

The US sanctions also target another heavy lift vessel operator, Hong Kong-based CFU Shipping Company, and the vessels Hunter Star and Nan Feng Zhi Xing. Hunter Star delivered the last module for the second production train of Arctic LNG 2 in early April, enabling Novatek to try to complete at least two-thirds of the project. It also carried a module in May 2023.

European Commission to impose new sanctions on Russian LNG