UK Becomes First G7 Nation To Sanction Vessels Linked To Russia’s Arctic LNG 2 Project

Britain on Tuesday announced a major new round of sanctions targeting Russian banks, oil tankers, LNG vessels, insurers and military procurement networks as it seeks to increase pressure on Moscow over its war in Ukraine.

The sanctions package covers more than 70 individuals and entities, including over 20 oil tankers linked to Russia’s so-called “shadow fleet” and several liquefied natural gas (LNG) vessels connected to the Arctic LNG 2 project.

It was the first time a G7 country had sanctioned ships linked to Russia’s Arctic LNG 2 project, a major LNG export development that has already been hit by U.S. and UK sanctions.

The latest measures also target Yandex Bank, Wildberries Bank, two other lenders and Rosgosstrakh, one of Russia’s largest insurance companies.

Britain said the sanctions are aimed at disrupting the financial and shipping networks that help Russia continue exporting oil and gas and acquiring technology for its military.

The announcement was made as Group of Seven leaders gathered in France, with UK Prime Minister Keir Starmer saying the sanctions were aimed at “the vessels, the money and the actors propping up Russia’s war economy” and those threatening European security.

Russia’s shadow fleet consists of vessels operating through complex ownership structures and foreign registrations that are used to move Russian energy exports while avoiding Western restrictions.

With the latest additions, Britain said it has now sanctioned more than 600 shadow fleet and Russian LNG vessels.

The government also announced sanctions against a network centred on a company called Neptune, which Britain described as a front company for Russia’s GRU military intelligence agency.

According to the UK, Neptune has been involved in secretly sourcing Western technology and goods for Russia’s defence sector. The sanctions target 10 GRU officers as well as several companies linked to the procurement network.

In addition, Britain imposed sanctions on military equipment suppliers based in China, Türkiye and Thailand, along with a Nigerian financial entity accused of helping Russia evade sanctions.

The maritime sector remains a key focus of Western sanctions as governments attempt to limit Russia’s energy revenues.

Britain said the Arctic LNG 2 project exported only 1.3 million metric tonnes of LNG in 2025 despite having an annual production capacity of 13.5 million tonnes. London said sanctions have significantly reduced the project’s export potential.

The Arctic LNG 2 project was sanctioned by the United States when production began in late 2023, prompting foreign shareholders to suspend their participation. Britain later added the project to its own sanctions list.

The UK also pointed to recent enforcement efforts against Russia’s shadow fleet. On Sunday, British commandos boarded and intercepted an oil tanker in the English Channel that authorities said was linked to the shadow fleet.

Separately, Britain announced £210 million ($280 million) in financing to support Ukraine’s energy security, including backing a loan for enriched uranium supplies to Ukrainian state nuclear power company Energoatom.

The UK government said it would continue coordinating with G7 allies to increase pressure on Russia’s shipping, energy and financial systems.

References: Reuters, UK Gov