The US has sanctioned two Indian shipping companies for their alleged involvement in Russia’s Novatek’s Arctic LNG-2 project. These measures are part of broader efforts to limit liquefied natural gas (LNG) exports from Russia amid increasing sanctions pressure on the Russian economy.
The US Treasury Department’s statement said that the US assets of Gotik Shipping Co and Plio Energy Cargo Shipping were frozen in the US, as well as prohibiting US citizens or entities from having any business dealings with the companies.
However, the Treasury allowed some operations with LNG tankers until 6 November 2024 to ensure the safety of the crew and ships.
According to the information provided, the sanctions include freezing the assets of these companies in the US and prohibiting American citizens and companies from doing any business with these companies. However, the US Treasury’s general licence allows certain operations involving LNG tankers owned by these Indian companies until 6 November 2024.
The inclusion of Indian shipping companies on the sanctions list could significantly affect their activities, especially given India’s strong economic ties with Russia. New Delhi has been actively cooperating with Moscow for many years, especially in the energy sector. US restrictions could jeopardise Indian companies involved in the logistics chains for the distribution of Russian energy products, which could affect the dynamics of bilateral trade relations.
Amid global political tensions, the Indian government may face a difficult decision: To continue its cooperation with Russia or to consider the possible consequences of deteriorating relations with the West.
