EU Implements Sanctions on Yamal LNG

The EU’s 15th sanctions package against Russia targets Yamal LNG for the first time by including a vessel servicing the project.

Christophe de Margerie

The ice-class tanker Christophe de Margerie (IMO: 9737187) has been included in the latest sanctions package adopted in Brussels yesterday. The vessel is one of fifteen ARC7 ice-class tankers built for the Yamal LNG project. It remains affiliated with the Russian shipping company Sovcomflot, though its direct ownership has shifted to the entity Zelitiko Shipping in the United Arab Emirates.

Previous sanctions from the U.S. and the EU primarily targeted the expansion of Russia’s LNG production. Until now, they avoided including LNG carriers operating under Novatek’s Yamal project. Since 2017, the project has delivered approximately 100 million tons of LNG to Europe.

New Sanctions Demonstrate LNG Phase-Out‍

Sanctioning Christophe de Margerie illustrates the EU’s effort to phase out Russian LNG. Additional measures are expected in the 16th sanctions package, likely coming in January 2025.

The loss of the 80,000 DWT ice-class tanker will have a notable impact when the EU’s transshipment ban on Russian LNG takes effect in March 2025. At that point, EU terminals such as Zeebrugge (Belgium) and Montoir (France), will no longer facilitate LNG transfers between ice-class tankers and conventional carriers. This change will force longer sailing routes for ice-class vessels or require ship-to-ship transfers at sea.

Operational Challenges

The Christophe de Margerie was built in 2016 and has already faced maintenance challenges. Western suppliers and shipyards, such as Damen Ship repair in France and Fayard A/S in Denmark, no longer accept the vessel for dry-docking services.

Industry experts previously anticipated the ship might still participate in short ship-to-ship operations during the winter. Now that it is officially sanctioned, buyers — even outside the EU— are likely to avoid its cargo.‍‍

A similar problem has emerged with Russia’s so-called LNG “shadow fleet,” which services the ArcticLNG 2 project. These vessels have failed to secure buyers for their chilled gas and remain idle in the Barents Sea and the Sea of Japan.