In a surprise move the European Union significantly tightened its sanctions against Russia’s liquefied natural gas sector. Brussels’ 17th sanctions package announced yesterday includes three newbuild LNG carriers managed by Japanese Mitsui OSK Lines Ltd. (MOL) under charter with Russian energy projects.
The North Light, North Moon, and North Ocean entered service just months ago carrying cargo for Novatek’s Yamal LNG project. A fourth vessel of the same series, North Valley, seemingly escaped sanctions, possibly because it did not yet carry any Russian gas. The vessel is currently en route from the Hanwha Ocean yard in South Korea to Russia’s Arctic.
The EU sanctions will be doubly painful for Novatek. The company recently started using the North-series vessels to receive Yamal cargoes via ship-to-ship transfers at the Kildin anchorage near Murmansk. The vessels also come with an Arc4 ice-class designation integral to reaching the Yamal LNG plant during early summer and early winter when Ob Bay and the Kara Sea remain ice-covered.
The STS transfers became necessary following a transshipment ban in EU ports took effect on March 26, 2025. The new EU sanctions will further complicate Novatek’s ability to export cargoes from Yamal to distant markets such as China.
All three vessels delivered cargoes to China in recent weeks. North Light received LNG in a STS near Murmansk on May 16.
It is unclear if EU sanctions, which take effect on May 21, allow for a wind-down period to deliver cargoes already en route. Mitsui OSK Lines Ltd. did immediately reply to a request for comment if it intends to offload the three vessels from its portfolio. The four North-series vessels built by Hanwha Ocean represent a significant investment of around $1bn.
It is the first time EU sanctions against LNG carriers leapfrog U.S. measures. Justifying its sanctions the EU said the vessels “are operated in such a way as to contribute or support actions or policies for the exploitation, development or expansion of the energy sector in Russia, including energy infrastructure.”
Between U.S. and EU sanctions a total of at least fifteen LNG tankers associated with Russia’s energy trade have now been sanctioned. A number of gas carriers continue idling in the Barents Sea unable to load legitimate cargoes.
The North Light, North Moon, and North Ocean will add to another quartet of newbuild North-series vessels sanctioned in December of 2024.
The North Sky, North Air, North Mountain, and North Wayhave since been renamed to Iris, Buran, Voskhod, and Zarya. They also had their registration switched from Panama to Russia, possibly in preparation to use them as ‘shadow fleet’ vessels to load cargoes from sanctioned Arctic LNG 2 later this summer.
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The European Union's 19th package of sanctions against Russia will list four companies involved in China's oil industry that circumvent Western restrictions, EU diplomatic sources said on Wednesday.
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