How has Russia managed to circumvent EU and UK energy sanctions?

The British company Shell, as well as European companies, continues to buy liquefied natural gas from the sanctioned Russian terminal Arctic LNG 2. Icebreakers from Atomflot, a Russian state-owned company also subject to Western sanctions, assist them.

The findings of the Greenpeace Unearthed investigation demonstrate this, posing a challenge to many countries, particularly the UK.

Russian gas continues to flow uninterruptedly to the European continent and to world markets from the Yamal LNG terminal located above the Arctic Circle.

Novatek built it in the port of Sabetta and launched it in 2017 in collaboration with French and Chinese companies.

In winter and spring, the waters around the Yamal LNG terminal are covered with a thick layer of ice.

During the ice season, LNG tankers (15 specialized tankers provide gas exports) often need the help of Atomflot’s nuclear-powered icebreakers to break through the ice.

Russia’s Atomflot has been under US and UK sanctions since May 2023 as part of a response to Russia’s invasion of Ukraine. The European Union, which also imposed its sanctions on Atomflot in February 2023, has described the company in official statements as “key” to Russia’s “Arctic hydrocarbon strategy” and a significant contributor to the Russian government’s financing of the war in Ukraine.

Yet Atomflot icebreakers continue to help tankers transport Russian gas to Western countries.

An investigation by Unearthed (a journalistic project of British Greenpeace) found that at least five gas tankers for Shell last winter and spring were convoyed by Atomflot icebreakers to reach open sea areas.

The cargoes were shipped to the Montoir LNG terminal in Brittany, France, and then transshipped to Shell-chartered vessels for transportation to Turkey, Kuwait, or India.

Unearthed also analyzed a broader sample of 30 other Russian LNG shipments delivered to EU ports during the last ice season and found that three-quarters of them were accompanied by sanctioned nuclear icebreakers.

Atomflot’s own pricing model for icebreaker services suggests that it costs about £300,000 to escort one LNG shipment through Arctic waters.

Revenues from these operations ultimately support Russia’s military efforts and arms production, where Rosatom enterprises play a significant role.

May Rosner, Global Witness’ Fossil Fuel Industry Crimes Coordinator, emphasizes that Western oil giants play a central role in multiple overlapping crises.

“If they are relying on a company under sanctions to break through Arctic ice that is already melting due to emissions-induced climate change, they will have to be held even more accountable,” she says.

And while Shell apologized in March 2022 and promised to phase out “all Russian hydrocarbon supplies,” it admits it “still has one long-term contractual obligation” until 2041.

If the courts or the UK sanctions regulator finds that Shell has violated the sanctions, it could be a criminal offense.

At the same time, British insurance brokers provide marine insurance for at least 12 tankers transporting gas for Yamal LNG. The UK should urgently extend its sanctions and ban insurance services for LNG tankers that depend on Atomflot for navigation.