Sanctions Policy Against the Russian Liquefied Natural Gas Sector (Arctic LNG 2 project)

Abstract

Compared to gas transported through pipelines, liquefied natural gas (LNG) can be delivered to recipients worldwide, which explains Russia’s rapid expansion of LNG production. However, the diversification of natural gas supplies is constrained by sanctions imposed on Russia to limit its revenues from fo ssil fuel exports. To assess the effects of these restrictions, this study examines a complex of LNG facilities built in the circumpolar climate and the sanctions intended to halt their development. The research seeks to answer whether the restrictions have achieved their intended objectives, thereby testing the hypothesis that sanctions will lead to the marginalization of the project under consideration. Using a case study approach – focused on the Arctic LNG 2 project – commonly applied in social sciences, the article provides a detailed analysis of the effectiveness of measures restricting the production and transportation of Russian LNG. The discussion is organized into two sections: the first outlines the process of constructing LNG terminal in the circumpolar climate, while the second analyzes the actions undertaken by some European Union and the U.S. administration to block the project. The findings indicate that sanctions targeting the construction of Arctic gas carriers, essential for exporting liquefied gas and ensuring direct deliveries to Europe, have significantly contributed to the underutilization of the examined LNG terminal.