The US Joe Biden administration has imposed sanctions on two Indian shipping companies. At the same time, it has been said to seize the property of the two companies.
The United States made this decision mainly because of the Russian gas producer Novatek’s involvement in the ‘Arctic LNG-2’ project.
The US State Department announced the imposition of this ban in a statement on September 5.
US State Department spokesman Matthew Miller said Washington took this step to increase pressure on Russia’s economy due to the war in Ukraine and prevent the export of LNG gas from the country.
According to the report of Azerbaijan’s news media News.AZ – the names of the two Indian companies sanctioned by the US Treasury Department are Gothic Shipping Company and Plio Energy Cargo Shipping. The US Treasury Department has ordered US citizens and companies to refrain from doing business with these two companies. The Treasury Department’s statement also said that the assets of these two companies would be seized. However, the company has allowed the operation of the two vessels till November 6 this year to ensure the safety of the crew.
According to the statement, the US administration has decided to sanction Gothic Shipping Company and Pleo Energy Cargo Shipping for their alleged involvement in Russia’s Novatek’s ‘Arctic LNG-2’ project. The measure is part of a larger effort to curb liquefied natural gas (LNG) exports from Russia. Because sanctions against the Russian economy are being tightened.
Earlier, in November 2023, Washington imposed a direct ban on the ‘Arctic LNG-2’ project. In December of the same year, it also imposed sanctions against several Russian companies involved in the production of LNG equipment. In addition, Washington is also trying to bring under the sanctions the companies that Russia suspects are using LNG tankers to continue exports past the sanctions.
In addition to the United States, European Union countries are also planning to impose restrictions on the transportation of Russian LNG through their ports. The system is expected to take effect in spring 2025. The package will include restrictions on investments, supplies and services required by Russian LNG projects such as Arctic LNG-2 and Murmansk LNG.
The inclusion of Indian shipping companies in the embargo list could significantly affect their operations. This could turn out to be negative for New Delhi, especially considering India’s strong economic ties with Russia.
