Moscow Tests Trump Administration with Sanctioned LNG Exports

Russia continues to export liquefied natural gas (LNG) from the US-sanctioned Arctic LNG 2 plant in the Arctic, attempting to circumvent Western restrictions and test the Trump Administration's response.

The Gaze reports on it, referring to Bloomberg.

The Arctic LNG 2 plant, sanctioned by the Biden Administration since 2023 following Russia's invasion of Ukraine, has shipped at least ten LNG shipments since the end of June.

By August, eight such shipments had arrived at the Beihai terminal in China, marking the plant's first deliveries to a foreign port. 

Previously, shipments were limited to storage facilities in Russia's Far East, as some importers avoided the risk of falling under US sanctions.

Deliveries are being made despite the escalating trade conflict between Washington and Beijing. By choosing a port with limited international influence, China is likely trying to protect its gas sector from possible retaliatory measures. 

Last year, the Arctic LNG 2 plant temporarily suspended operations due to a lack of buyers and seasonal ice accumulation, unloading LNG in domestic storage facilities.

Despite the new escalation of the trade conflict between Washington and Beijing, the US has so far refrained from tightening measures against Russian LNG, which is under sanctions. 

Russia, in turn, continues to use its energy resources to circumvent sanctions, while testing how far the new US administration is willing to go in responding to violations of energy restrictions.

As The Gaze previously informed, China is preparing to let major Russian energy companies raise capital in yuan through so-called “Panda bonds,” in what would be the first such access since Moscow launched its full-scale invasion of Ukraine.