Novatek has been forced to suspend LNG 2 in the Arctic. (Source: Novatek)

In fact, facing increasing sanctions from the US and other countries due to the conflict in Ukraine, Novatek was forced to suspend LNG 2 in the Arctic - the only operating liquefied natural gas (LNG) train, according to Reuters (UK).

The company currently has no plans to restart until next summer.

The suspension, effective October 11, reflects the difficulties the Arctic LNG 2 project has encountered in finding customers and securing the specialized ice-class vessels needed for winter operations.

These developments for Arctic LNG 2 are a significant setback for the country's gas ambitions.

The project, located mainly on the Gydan Peninsula in the Arctic and majority-owned by Novatek, is expected to expand Russia's share of the global LNG market from 8% to an ambitious 20% by 2030.

US sanctions have made potential customers wary of dealing with Russian LNG.

Earlier, US Assistant Secretary of Energy Resources Geoffrey Pyatt informed that the US is stepping up efforts to choke off Russian revenue from LNG sales. Because this is part of a broader strategy to reduce funding for Moscow's military actions.

While the Arctic LNG 2 project is currently on hold, several other Russian LNG operations, such as the Yamal and Portovaya projects, continue to supply gas to Europe and Asia.

This targeted sanctions approach has allowed Washington to limit the influence of LNG 2 in the Arctic while maintaining a stable global LNG market.

Russian LNG will account for 20% of the bloc's liquefied natural gas imports in the first nine months of 2024, a new report from the European Union (EU) said.

Although the share of Russian LNG in the EU's total LNG imports increased, compared to the same period in 2023, EU LNG imports decreased by 23%, according to the Agency for the Cooperation in Energy Regulation (ACER).