China, Russia Defy Sanctions with Increased Trade via Arctic LNG 2 Project
A Chinese project management vessel has docked in the Russian-occupied port of Sevastopol at least three times in the past month, while seven LNG tankers from Russia's Arctic LNG 2 project have reached China since late August. The project, operated by Novatek, has hit record production levels despite US sanctions imposed following the 2022 invasion of Ukraine.
The Chinese project management vessel's visits to Sevastopol, a key port in the Crimean Peninsula, come amidst ongoing geopolitical tensions. Meanwhile, seven LNG tankers from Russia's Arctic LNG 2 project have successfully reached the Beihai terminal in southern China since late August, with another vessel currently en route. This marks a significant increase in LNG exports to China, despite seasonal restrictions on direct shipments to Asia.
The Arctic LNG 2 project, launched in December 2023, has seen record production levels since its inception. In September, the facility achieved an average daily output of 17.9 million cubic meters, a 14% increase from its previous peak in August. Despite US sanctions that largely brought the project to a standstill in 2022, Novatek has been working diligently to keep it operational.
The Chinese project management vessel's visits to Sevastopol and the increased LNG exports to China from Russia's Arctic LNG 2 project highlight the ongoing economic ties between the two countries, despite international sanctions and geopolitical tensions. The project's record production levels demonstrate Novatek's resilience in the face of US sanctions.
