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How Russia Sells Arctic Gas Amid Sanctions

How Russia Sells Arctic Gas Amid Sanctions

Russia is taking measures to boost natural gas exports from the Arctic LNG 2 facility located in the Kara Sea, despite Western sanctions, by doubling the number of LNG carriers from 11 to around 20 ships, most of which are designed to navigate icy waters. Russia is focused on increasing gas exports to Asian markets, particularly China, by rerouting products through storage facilities in the far east and far west of Russia, heavily relying on icebreaker-equipped vessels. Although actual production amounts to 5 million tons annually—about a quarter of the full capacity of 19.8 million tons—the sanctions have reduced efficiency and prompted strategies to circumvent restrictions. Moscow is also relying on significant discounts, including to China, to secure sales, despite the geopolitical risks of such dependence—risks that are heightened by China's increasing influence and the tightening European market.

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