The sanctions cover ships which were, until relatively recently, insured by British companies…reports Asian Lite News
For the first time since Russia invaded Ukraine two and a half years ago, the UK has begun to sanction tankers carrying Russian liquefied natural gas (LNG) to Europe and around the world.
The Foreign, Commonwealth and Development Office (FCDO) has announced it is using new powers to sanction five LNG tankers and two companies involved in the LNG sector.
The sanctions cover ships which were, until relatively recently, insured by British companies, though those insurers cut their ties when those vessels were sanctioned by the US.
The FCDO is also closely examining whether it should sanction other LNG tankers carrying Russian LNG. This follows a reports earlier this year, which revealed that a company whose LNG operations headquarters are located in Glasgow, Seapeak, part owns and operates a number of tankers carrying Russian gas from Siberia to Europe. The report also found that numerous LNG tankers are still insured by British companies.
The flow of LNG out of Russia represents a key source of Russian income, both for domestic businesses and, even more so, for government revenues. While many other streams of natural resources exports are declining, the Kremlin is hoping to increase its share of global LNG market share from 8% to 20%.
However, sanctioning these vessels is a thorny business, since they are still providing large quantities of gas to Europe, which has so far stopped short of sanctioning Russian gas.
But since the UK is a critical player in this shipping sector, it both benefits from the trade, and has an outsize influence in clamping down on it.
The FCDO is understood to be preparing to use its new powers, which allow it to sanction individual vessels, again in the coming months.
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