Russia is expanding its covert LNG fleet to bypass Western sanctions, using aging tankers like the 19-year-old Arctic Express to move fuel from sanctioned projects. The vessel recently loaded gas at the Saam floating storage unit in Murmansk, which holds output from the US-sanctioned Arctic LNG 2 facility. This marks the first time the Arctic Express has carried blacklisted fuel, signaling Moscow's growing reliance on a shadow fleet to sustain exports.
At least 21 ships have now been used to ferry LNG from sanctioned Russian projects, according to tracking data, but a vessel shortage remains the biggest bottleneck. The Arctic Express, commissioned in 2007 and formerly Greek-managed, was transferred to St Petersburg-based Smp Techmanagement LLC in May. The company owns three other LNG vessels in Russia's dark fleet, highlighting a systematic effort to repurpose older tankers for sanctioned trade.
Arctic LNG 2 exported over 400,000 tons of LNG in May, a record high since shipments began in 2024, despite US sanctions. Russia added four more tankers to its shadow fleet earlier this year, vessels that previously serviced Oman's export plant. The expansion suggests Moscow is willing to invest in older, less efficient ships to maintain revenue flows, even as Western enforcement tightens.
What to watch next: Whether the US and allies will target the insurers, ports, or intermediaries enabling these shadow fleet operations, and if Russia can secure enough vessels to sustain Arctic LNG 2's export growth.
Key Takeaways
- Russia is using aging tankers like the 19-year-old Arctic Express to circumvent Western sanctions on LNG exports.
- At least 21 vessels now form Russia's shadow fleet for sanctioned LNG projects, but a shortage of suitable ships persists.
- Arctic LNG 2 hit a record export of 400,000 tons in May, showing sanctions have not fully halted production.
- Moscow is repurposing older tankers from other regions, including vessels previously serving Oman's export plant.
Insights & Analysis
- The use of older tankers increases operational and environmental risks, potentially creating new liabilities for Russia's energy trade.
- This shadow fleet strategy mirrors Russia's earlier tactics in oil exports, suggesting a long-term adaptation to sanctions that could erode Western enforcement credibility.