How Russia managed to evade EU and UK energy sanctions
British company Shell and several European firms continue purchasing liquefied natural gas (LNG) from the sanctioned Russian terminal Arctic LNG 2, with the assistance of icebreakers operated by Russia’s state-owned Atomflot, a company also under Western sanctions.
This was revealed in an investigation by Greenpeace Unearthed, a report that has sparked controversy, particularly in the UK.
Read more about how Russia bypasses restrictions on energy exports and the reactions this scandal has provoked, read the article by Oleh Savitskyi, Strategic Advisor at Razom We Stand – Icebreakers vs. sanctions: how Russia circumvents energy export restrictions.
Russian LNG continues to flow uninterrupted into European markets and beyond from the Yamal LNG terminal, located in the Ob Bay within the Arctic Circle. The terminal, built by the Russian company Novatek in collaboration with French and Chinese firms, has been operational since 2017.
During winter and spring, thick ice covers the waters surrounding the Yamal LNG terminal.
To ensure continuous exports, a fleet of 15 specialised LNG tankers often requires assistance from Atomflot’s nuclear-powered icebreakers to navigate through the frozen waters.
Despite being sanctioned by the US and the UK since May 2023, and by the EU since February 2023, Atomflot remains instrumental in enabling Russian LNG shipments. The EU officially describes Atomflot as a "key player" in Russia’s Arctic hydrocarbon strategy and a major contributor to financing Russia’s war in Ukraine.
However, the icebreakers continue escorting tankers carrying Russian gas to Western markets.
The Unearthed investigation found that at least five LNG tankers carrying cargo for Shell were escorted by Atomflot icebreakers last winter and spring to open waters. These shipments were then delivered to the Montoir LNG terminal in Brittany, France, before being transferred to Shell-chartered vessels bound for Türkiye, Kuwait, or India.
A broader analysis of 30 additional Russian LNG shipments to EU ports during the last ice season revealed that three-quarters of them were accompanied by sanctioned nuclear icebreakers.
Atomflot’s pricing model suggests that escorting a single LNG shipment through Arctic waters costs around £300,000 per voyage. These earnings ultimately support Russia’s war effort, with state-owned nuclear corporation "Rosatom" playing a significant role in arms production.
Maya Rosner, a programьу coordinator at Global Witness focused on fossil fuel-related crimes, emphasises that Western oil giants are deeply entangled in multiple overlapping crises.
"If they rely on a sanctioned company to break through Arctic ice, which itself is melting due to climate change caused by fossil fuel emissions, then they must be held even more accountable," she stated.
Although Shell apologised in March 2022 and pledged to gradually phase out its involvement in Russian hydrocarbon supplies, the company admits to having "one long-term contractual obligation" that extends until 2041.
If UK courts or sanctions regulators determine that Shell violated sanctions, it could face criminal charges.
Meanwhile, British insurance brokers are currently providing maritime insurance for at least 12 tankers transporting gas from Yamal LNG. The UK must urgently expand its sanctions and prohibit insurance services for LNG tankers reliant on Atomflot assistance.