On September 5, 2024, the U.S. Department of the Treasury’s Office of Foreign Assets Control joined the Department of State to sanction two entities and two vessels for their efforts to export liquefied natural gas (“LNG”) from the U.S.-sanctioned Arctic LNG 2 project. The sanctions were imposed to limit Russia’s ability to support its war against Ukraine and to hinder efforts to expand Russia’s global energy leverage. According to the State Department, on August 25, 2024, LNG carrier New Energy engaged in deceptive shipping practices, including shutting off its automatic identification system, to load LNG from the Arctic LNG 2 project and conduct a ship-to-ship transfer to LNG carrier Pioneer, a vessel previously-sanctioned by the United States in August 2024. The United States sanctioned LNG carrier New Energy; its registered owner Gotik Energy Shipping Co (“Gotik”); its commercial manager Plio Energy Cargo Shipping OPC PVT LTD (“Plio Energy”); and LNG carrier Mulan, a vessel managed and operated by Plio Energy.
The sanctions were imposed pursuant to Executive Order 14024, as amended, for providing material support to Limited Liability Company Arctic LNG 2, an entity designated under EO 14024. As a result of these designations, all property and interests in property of the designated persons within the United States or within the possession or control of a U.S. person are blocked, and U.S. persons are generally prohibited from engaging in transactions involving a designated person. Entities owned 50 percent or more by one or more blocked persons are also blocked.
In connection with the new designations, OFAC also issued General License 108 to temporarily enable limited safety and environmental transactions involving Gotik and Plio Energy, or entities in which they own a 50 percent or greater interest. General License 108 authorizes these transactions until November 6, 2024.
U.S. Department of State Press Statement | OFAC Recent Action | General License 108