Russia has been quietly exanding its shadow fleet of gas carrying ships, with second hand vessels and its first domestically built tankers ahead of an EU ban on the Russian LNG cargoes that takes effect next year, according to FT

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Russia has been quietly exanding its shadow fleet of gas carrying ships, with second hand vessels and its first domestically built tankers ahead of an EU ban on the Russian LNG cargoes that takes effect next year, according to FT

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This follows the established playbook from the crude and products sanctions regime: ahead of a formal restriction taking effect, the sanctioned exporter assembles tonnage outside Western ownership, insurance, and classification, using ageing second-hand vessels bought through opaque intermediaries, supplemented where possible by domestic build. The pattern in oil was that enforcement difficulty, not the ban itself, determined how much supply actually came off the market, and the same question now applies to LNG, where the specialised fleet is far smaller and far harder to substitute than conventional tankers. The EU measure in view targets Russian LNG transhipment and related services rather than a full import cutoff, so the relevant channel is logistics cost and routing friction for cargoes, particularly Arctic volumes that depend on ship-to-ship transfer in European waters, rather than an immediate loss of molecules. Domestically built gas carriers are a longer-lead item; their significance is that Moscow is investing to reduce reliance on foreign-built ice-class tonnage, which has historically been the binding constraint on its Arctic export projects. Worth watching are vessel sale registrations and flag changes, any extension of sanctions to the shadow fleet itself as happened with crude, and whether European buyers of remaining Russian pipeline and LNG volumes accelerate contract diversification ahead of the effective date. Asian spot LNG pricing is the transmission point if Russian cargoes are displaced into longer voyages, since that tightens effective shipping supply even where the gas still flows.

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