Latest US sanctions against Moscow target Indian companies

Two entities allegedly linked to the Arctic LNG 2 project are on the US Treasury’s list of measures targeting Russia’s energy sector

Two Indian companies have been sanctioned by the US and UK as a part of the latest move against Russia’s energy sector, which was announced on Friday. The sweeping measures by the US Treasury Department and UK government target two major Russian petroleum producers, Gazprom Neft and Surgutneftegaz, and associated entities, and include restrictions on 183 vessels involved in transporting Russian crude oil.

The two Indian entities on the list are Skyhart Management Services Private Limited and Avision Shipping Services Private Limited, which, according to the US State Department’s statement, have been sanctioned for their alleged roles in supporting Russia’s Arctic LNG 2 project, which is partly owned and developed by Novatek, the country’s largest liquefied natural gas producer. The project has been under US sanctions since 2023. 

Both companies have been designated under Executive Order 14024 for materially assisting or providing support to the Arctic LNG 2 project. Additionally, two vessels managed by Avision, Pravasi, and Onyx have been identified as property tied to the company.

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The US authorities claimed that Indian companies managed liquefied natural gas carriers that loaded cargo from the project, and that “Russia has engaged in efforts to obfuscate LNG carriers’ ownership through third country ship management entities” in an “attempt to revitalize” the Arctic LNG 2 project. 

In September last year, Washington sanctioned two other Indian-based companies – Gotik and Plio Energy, which are registered in Mumbai – which it claimed were linked to the project. It also sanctioned two vessels owned by these companies for their alleged connection “to attempts to export” LNG from the Novatek project.  

In a separate move last year, the US imposed sanctions on 19 Indian companies and two nationals for supplying electronics and aviation components to Russian firms. In response, New Delhi stated that the companies had not violated domestic laws and were operating within India’s legal framework. The Indian Ministry of Foreign Affairs noted that New Delhi was in touch with Washington to “clarify” issues.

Russia has emerged as a key energy partner of India in the past two years, becoming a leading supplier of crude oil. In September 2024, India’s crude imports from Russia rose by 11.7% from August, reaching around 1.9 million barrels per day, which accounted for roughly 40% of India’s total crude imports that month. New Delhi has said that Moscow has been instrumental in ensuring the nation’s energy security and that it will increase its energy imports. 

READ MORE: US and EU warn Indian exporters on Russia trade risks – media 

However, the latest sanctions targeting Russia’s tanker fleet could cause severe disruptions of Russian oil exports to India and another major oil buyer – China – Reuters reported, citing sources in the Russian and Indian oil industries. So far, ships transporting oil and LNG, along with many Russian oil traders, have evaded the toughest US sanctions, as the administration of US President Joe Biden has been cautious about imposing stricter measures due to concerns over a global surge in oil prices.