The Arctic LNG 2 project is a pivotal component of Russia’s strategy to increase its share of the global LNG market from 8 percent to a targeted fifth by 2030-2035.
Russia has expressed strong condemnation against the United States for imposing sanctions on the ambitious Arctic LNG 2 project, asserting that such measures undermine global energy security.
The Russian foreign ministry’s spokeswoman, Maria Zakharova, labeled the move as “unacceptable” and criticized Washington for interfering with significant international commercial projects that impact the energy balance of numerous states.
The Arctic LNG 2 project, situated on the Gydan Peninsula in the Arctic, is a pivotal component of Russia’s strategy to increase its share of the global liquefied natural gas (LNG) market from 8 percent to a targeted fifth by 2030-2035. However, the recent sanctions have taken a toll on the project, leading to the suspension of participation by key partners from China, Japan, and France, who collectively hold a substantial 40 percent stake in the venture.
Zakharova emphasized that the situation surrounding Arctic LNG 2 exemplifies what Russia perceives as the destructive role played by Washington in global economic security. She accused the U.S. of pursuing its own selfish interests, attempting to oust competitors, and jeopardizing global energy security under the guise of maintaining it.
The sanctions, announced last month by the U.S., are part of a broader effort by Western nations to curtail Moscow’s financial capabilities and weaken its military strength, particularly in light of Russia’s involvement in the conflict with Ukraine.
Russia, currently the fourth-largest producer of sea-borne LNG behind the United States, Qatar, and Australia, sees the Arctic LNG 2 project as instrumental in advancing its energy objectives. However, the sanctions have not only led to the withdrawal of major partners but also compelled the project developer, Novatek, to declare force majeure on LNG supplies, originally scheduled to commence production in early 2024.
Deputy Prime Minister Alexander Novak highlighted Russia’s successful pivot towards Asian markets for oil exports this year, predominantly to China and India. Russia aims to leverage income from these energy customers to sustain its military campaign in Ukraine, especially considering the challenges Ukraine faces in accessing funds and weapons from Western partners due to the conflict.