Russia is renewing efforts to boost its liquefied natural gas (LNG) exports, even as U.S. sanctions continue to hamper activity at its major Arctic LNG 2 facility.
The Arctic LNG 2 project — operated by Russian energy company Novatek — was once expected to be a cornerstone of the country’s LNG ambitions, targeting annual production of around 20 million metric tons. However, sanctions introduced by the U.S. in 2024 forced the plant to reduce output and suspend liquefaction.
Now, signs are emerging that Moscow is trying to restart the operation. For the first time in months, a tanker has docked at the Arctic LNG 2 site, according to ship-tracking data and satellite imagery. Reports also indicate that a group of 13 vessels — including several ice-class tankers and conventional LNG ships — may be part of a strategy to restart shipments using Russia’s so-called “shadow fleet.”
This fleet, which has been used previously to move sanctioned oil, consists mostly of older vessels that operate outside standard international tracking and insurance systems. Some of the ships are currently stationed in the Barents Sea, others are undergoing repairs in China, and a few are idling in different Russian regions.
Russia’s ability to transport LNG may be improving, but selling it remains a challenge. Potential buyers in countries like China and India have reportedly not committed to any purchases, largely due to concerns over violating U.S. sanctions. While the Biden administration imposed tough penalties on entities linked to Arctic LNG 2, it’s unclear how strictly the new Trump administration will enforce them.
The project has been largely dormant since late 2024, when gas production was nearly halted after liquefaction was suspended. The decline followed a wave of sanctions targeting not just the facility, but also Novatek itself.
Despite these setbacks, analysts say the number of vessels now available to Russia could support limited LNG exports — if buyers can be found. Still, the overall outlook remains uncertain as legal risks and geopolitical pressures continue to weigh on the project’s future.
