U.S. sanctions Indian shipping firms over involvement in Russian LNG project
The U.S. has imposed sanctions on two Indian shipping companies for their alleged involvement in Russia’s “Arctic LNG-2” project by NOVATEK. These measures are part of broader efforts to limit the export of liquefied natural gas (LNG) from Russia amid escalating sanctions pressure on the Russian economy.
The U.S. Treasury Department’s statement announced the freezing of assets belonging to Gotik Shipping Co and Plio Energy Cargo Shipping within the U.S., along with a ban on any business dealings between American citizens or organizations and these companies.
However, the Treasury has permitted specific operations involving LNG tankers owned by these Indian companies until November 6, 2024, to ensure the safety of crews and vessels.
The sanctions aim to curb the export of LNG from Russia as part of ongoing efforts to tighten sanctions against the Russian economy. The U.S. Treasury’s general license allows for operations necessary for the safety of crews and vessels, including medical assistance, docking, repairs, and other essential services to keep the ships operational.
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.
These 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. In addition, measures have been taken to block LNG tankers suspected of being used to bypass sanctions.
The European Union is also planning to impose restrictions on the transit of Russian LNG through its ports, expected to take effect in the spring of 2025. These measures 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, potentially affecting the dynamics of bilateral trade relations.
Amidst global political tensions, the Indian government may face a tough decision: whether to continue its cooperation with Russia or consider the potential consequences of worsening relations with the West.
Credit: News.AZ
