On January 10, 2025, the United States and the United Kingdom took significant steps to intensify sanctions against Russia, particularly its energy sector. These new sanctions, part of an ongoing strategy to curb Russia’s global energy influence amid the conflict in Ukraine, have targeted key players in Russia’s oil and gas industry, including Gazprom Neft and Surgutneftegaz, two of the country’s major petroleum producers. In an unexpected turn, the sanctions also affected two Indian companies, Skyhart Management Services Private Limited and Avision Shipping Services Private Limited, which are alleged to have links to the controversial Arctic LNG 2 project.

The Arctic LNG 2 project, a colossal liquefied natural gas (LNG) initiative, is seen as a critical piece of Russia’s strategy to expand its LNG production and diversify its energy exports. The project, primarily led by Novatek, Russia’s largest liquefied natural gas producer, aims to develop three LNG trains in the Yamal Peninsula and in the Arctic Circle, a region increasingly vital to Russia’s energy future. The project, which is set to produce millions of tonnes of LNG annually, is a key part of Russia’s long-term energy plans, especially as it seeks to reduce reliance on European markets and pivot to new buyers in Asia, especially China and India.

Since its inception, the Arctic LNG 2 project has been subject to international scrutiny and sanctions. The United States imposed sanctions on the project in 2023, targeting firms and entities involved in its construction and development, citing concerns about its role in funding Russia’s energy sector, which directly supports the Kremlin’s military operations in Ukraine. The latest round of sanctions is a continuation of this pressure.

The two Indian entities sanctioned, Skyhart Management Services Private Limited and Avision Shipping Services Private Limited, are now on the US Treasury’s list of entities that support Russia’s energy industry. The

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