As global leaders continue to respond to Russia’s illegal invasion of Ukraine, sanctions should be playing a key role in choking the financial lifelines that enable the Kremlin to fund its continued attacks.
The UK has been a leader in imposing robust sanctions against Russian oil and gas, including the vital step of banning Russian LNG gas imports. Despite these efforts, troubling loopholes remain. A blatant example of this lies in Glasgow, Scotland, where Seapeak Maritime—one of the largest independent owner-operators of liquefied gas vessels—continues to facilitate the flow of Russian gas across the world from its offices in the center of Glasgow.
Seapeak Maritime operates six ice-class LNG carriers, including the Yakov Gakkel, which transport Russian liquefied natural gas (LNG) from the Arctic to European ports. These ships, managed by a Scottish-registered firm, help Russia export an estimated $8 billion worth of LNG annually, primarily from the Yamal and Gydan peninsulas, which contain the world’s largest gas reserves.
The Kremlin’s continued efforts to expand its gas production and export infrastructure in the Arctic directly undermine global efforts to decarbonize and fight the climate crisis. The revenue generated from this trade also directly fuels Russia’s war chest, financing missiles and weapons that are being used to devastate Ukrainian cities and civilians daily.
While the UK has rightly banned the provision of insurance for Russian oil tankers, LNG vessels have somehow slipped through the cracks so far.
British insurers continue to provide marine risk insurance for LNG ships that export Russian gas from Yamal, including those operated by Seapeak. This glaring omission in the sanctions regime allows billions of pounds to flow back into Russian hands and find its way into the country’s military budget, which is currently the highest since the Soviet era and is planned to increase by 30% in 2025.
Seapeak’s activities demonstrate the inconsistencies in the UK’s sanctions framework.
The company’s operational headquarters may be in Glasgow, but its actions resonate far beyond the River Clyde. The Russian LNG it helps transport ends up in European power grids and heating systems, despite British and European politicians claiming to be doing everything they can to stop Putin.
Patrick Harvie, Leader of the Scottish Green Party, recently raised the issue in the Scottish Parliament, stating,
“I repeat my call for the Scottish Government to work with the UK Government, …to address those who are still seeking to circumvent the sanctions against Russia, including the company Seapeak Maritime, which is based in Glasgow – and is still engaging in the trade in Russian fossil fuels.”
Scottish First Minister John Swinney continues to voice his support for Ukraine’s sovereignty and territorial integrity. But words of solidarity are not enough.
Russia’s ambitions in the Arctic have far-reaching consequences for the UK and Europe’s energy security, as well as the global climate crisis. If the Kremlin succeeds in further developing its Arctic gas fields, it will increase its leverage over global energy markets at a time when Europe is working to reduce its dependence on fossil fuels.
The UK has a moral and strategic imperative to cut off support for Russia’s Arctic ventures. By continuing to provide insurance and maritime services for LNG tankers navigating the Northern Sea Route, UK-based companies are undermining sanctions aimed at helping Ukraine and enabling the long-term expansion of one of the most environmentally damaging industries on the planet.
The UK government must act decisively by closing existing loopholes in its sanctions.
- First, it should immediately ban the provision of P&I insurance and maritime services to LNG tankers involved in Russian trade. This step is essential to close the loopholes that Seapeak and other companies exploit. Ultimately, the UK must act now to shut down companies like Seapeak’s ability to facilitate the Kremlin’s bloody onslaught on Ukraine.
- Coordination with the US, G7, and EU to target the entire value chain of Russian Arctic LNG projects like Yamal and Arctic LNG 2 should also be a top priority. These projects are central to Russia’s aspirations for global energy dominance, and disrupting them will weaken the Kremlin’s power and directly affect its military funding.
- Targeted sanctions should also be immediately imposed on ship management companies and registered owners of Russia’s new “shadow” LNG fleet, which Russia has recently employed to circumvent sanctions.
Without these coordinated efforts, Russia will continue to find ways to evade restrictions and continue its lucrative gas trade.
As long as UK-based companies like Seapeak Maritime continue to help Russia export its gas, the UK fails to live up to its moral responsibility. The loopholes in the sanctions are glaring, and the time to close them is now.
For the Ukrainian people, Europe’s energy security, and the climate, we cannot afford to wait any longer.
Editor’s note. The opinions expressed in our Opinion section belong to their authors. Euromaidan Press’ editorial team may or may not share them.
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