Russia Builds Secretive LNG Fleet Ahead of EU Ban
Russia is rapidly building a shadow fleet of liquefied natural gas (LNG) carriers to circumvent the European Union's impending ban on Russian LNG imports, which takes effect on January 1, 2027. According to Ukraine's Foreign Intelligence Service, Moscow is acquiring aging vessels on the secondary market and commissioning new ones from domestic shipyards.
More than 65% of Russia's LNG production comes from Novatek's Yamal LNG and Arctic LNG 2 projects, with China as the main buyer of the latter. The intelligence service notes that unlike oil tankers, which can be sourced more easily, LNG carriers require specialized cryogenic technology to keep natural gas in a liquid state.
Due to this complexity, Russia is buying older vessels with an average age of around 10 years, costing up to $300 million each. Over the past six months, the country's LNG shadow fleet has expanded by at least eight used carriers and two newly built vessels from the Zvezda shipyard in Primorsky Krai.
The intelligence service estimates that Russia now operates a total of 25 vessels in its LNG shadow fleet. However, sanctions are limiting the expansion of this shipping capacity: six completed Arc7 ice-class LNG carriers intended for the Kremlin's Arctic projects remain blocked at South Korea's Hanwha Ocean shipyard.