Co-Authored with Zach Simon.
Russia has delivered the first drop of liquefied natural gas (LNG) from its heavily sanctioned flagship project, Arctic LNG-2. Moscow will hail the achievement as a victory over Western boycotts and proof that its domestic LNG industry is in rude health. In reality, however, the plant is likely to operate at severely reduced capacity and might never achieve its full potential – undermining the Kremlin’s aspirations to become a major player in the global LNG market.
On 2 November, the United States expanded sanctions against Arctic LNG 2 (ALNG2), Novatek’s flagship LNG project on Russia’s frigid Gydan Peninsula. The move represents an escalation in the West’s strategy targeting Russia’s fossil fuel industry that has long focused on minimising export revenues while maintaining liquidity in global energy markets.
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