on today's episode of "Poking the Bear"
UK Strikes at Russia’s Arctic LNG 2 Lifeline with Sanctions on China’s Beihai Terminal
Mike Schuler October 15, 2025
The United Kingdom has sanctioned China’s Beihai LNG terminal as part of a comprehensive package targeting Russia’s energy sector and its international enablers, marking a significant escalation in Western efforts to disrupt Russian liquefied natural gas exports that continue despite existing international sanctions.
UK Foreign Secretary Yvette Cooper announced 90 new sanctions in Parliament, directly targeting Russian oil giants Rosneft and Lukoil alongside four oil terminals in China, 44 tankers in Russia’s shadow fleet, and Indian refiner Nayara Energy Limited.
“At this critical moment for Ukraine, Europe is stepping up. Together, the UK and our allies are piling the pressure on Putin – going after his oil, gas and shadow fleet – and we will not relent until he abandons his failed war of conquest and gets serious about peace,” Cooper said.
The Beihai terminal, operated by state-owned PipeChina, emerged as a key destination for Russian LNG after receiving the first Arctic LNG 2 shipment on August 28 aboard the Arctic Mulan. The delivery ended more than a year of uncertainty for the project, which had struggled to find buyers after U.S. sanctions were imposed in late 2023.
Since then, the terminal has received at least six additional cargoes from Arctic LNG 2, which the UK previously sanctioned in February 2024.
Beijing had previously been reluctant to accept Arctic LNG 2 cargoes for over a year, likely concerned about exposing its energy companies to U.S. secondary sanctions. However, China’s stance shifted after the August Putin-Trump meeting in Alaska, when several LNG carriers carrying Arctic LNG 2 cargoes departed for Asia at once—signaling China’s willingness to support Russian energy exports more openly.
Chancellor Rachel Reeves, who was in Washington DC for International Monetary Fund meetings when the sanctions were announced, stated: “We are sending a clear signal: Russian oil is off the market. As Putin’s aggression intensifies, we are stepping up our response. The UK will continue to strip away the funding that fuels his war machine.”
Seven specialized LNG tankers were also sanctioned in today’s package, including the Buran, Zarya, Voskhod, Christophe de Margerie, Clean Ocean, Clean Vision, and Clean Planet.
The Arctic LNG 2 project, which is 60% owned by Russia’s Novatek, has continued sending out LNG cargoes despite sanctions, with deliveries reaching two floating storage facilities in Russia in addition to the Beihai terminal. The $21 billion venture was designed to supply up to 19.8 million tonnes of LNG annually once fully operational.
The latest sanctions coincide with Russian Energy Week in Moscow, undermining President Putin’s efforts to promote Russian energy exports to global buyers. As Russia’s oil revenues decline under the weight of international sanctions, the Kremlin has been attempting to expand its LNG industry to offset these losses.
UK sanctions have frozen £28.7 billion of Russian assets since February 2022, according to the UK’s Office of Financial Sanctions Implementation’s Annual Review 2024-25.
The 90 new sanctions also strike at the heart of Putin’s war funding, targeting Rosneft and Lukoil – two of the world’s biggest energy companies that together export 3.1 million barrels of oil per day. The measures also extend beyond oil, hitting businesses that supply electronics critical for Russian drones and missiles across countries including Thailand, Singapore, Turkey, and China.
https://gcaptain.com/uk-strikes-at-russias-arctic-lng-2-lifeline-with-sanctions-on-chinas-beihai-terminal