EU Eyes Ban on LNG Tanker Services in New Sanctions, Timing Will Be Key to Ensure Effectiveness

The European Union is preparing sweeping new restrictions on services for liquefied natural gas (LNG) tankers as part of its upcoming 20th sanctions package against Russia, a move that could significantly disrupt the operation of Moscow’s Arctic gas exports and the specialised ice-class vessels that underpin them.

The move comes after several EU member states, including Sweden and Finland, urged Brussels to tighten the screws on Russian Arctic shipping.

European Commission President Ursula von der Leyen said the new measures would go beyond previous rounds by targeting the maritime backbone of Russia’s LNG trade.

“We also make it more difficult for Russia to acquire tankers to be used for the shadow fleet and add sweeping bans on provision of maintenance and other services for LNG tankers and icebreakers to further dent gas export projects,” von der Leyen said.

If adopted, the proposal would strike at a critical vulnerability in Russia’s flagship Yamal LNG project, which depends on a fleet of 14 Arc7 ice-class LNG carriers capable of navigating Arctic ice and ensuring year-round exports along the Northern Sea Route.

European yards kept Arctic fleet running

Despite nearly four years of sanctions following Russia’s invasion of Ukraine, European shipyards and service providers have remained central to keeping the Yamal fleet operational. The vessels, built in South Korea and designed for extreme Arctic conditions, require highly specialised dry-dock facilities that are scarce outside Europe.

For years, Brest-based Damen Shiprepair in France and Danish yard Fayard A/S in Odense played an outsized role in servicing the Arc7 fleet. Damen halted work on Russian-linked vessels early last year, citing the war in Ukraine. Privately owned Danish Fayard has thus emerged as the sole European yard still providing these services.

Crucially the Danish yard has stepped up maintenance of the vessels following Damen’s exit. Fayard serviced seven Arc7 vessels between 2022 and 2024, according to industry data, and activity has accelerated sharply in recent months, with five Arc7 tankers visiting its drydock during summer and fall 2025.

LNG carriers Nikolay Urvantsev, Fedor Litke, Boris Vilkitsky, Eduard Toll and Vladimir Rusanov each spent between two weeks at the facility in the period from June to September.

In compliance with sanctions

Fayard said it operates fully within EU law and has complied with all sanctions regimes to date.

“Fayard fully supports Denmark and the EU’s stance towards Russia,” the company said in a written response to HNN. “Our international clients operate in full compliance with applicable legislation, and we fully support and adhere to the EU’s sanctions packages as well as the EU’s ambition to phase out Russian natural gas by 2027.”

The shipyard added that continued trade reflected deliberate policy choices by EU lawmakers.

“The continued extensive trade with Russia – which also involves European ports, port operators and international shipping companies – reflects the fact that the EU faces a raw materials challenge,” Fayard said, noting that LNG, oil under price caps, fertilisers and metals remain legally traded.

Among the more than 100 vessels Fayard services annually, LNG carriers linked to the Yamal LNG project accounted for five vessels in 2025 and four in 2024, the company confirmed, adding that they transport gas to European ports including France, the Netherlands, and Belgium.

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Sweden, Finland Urge EU to Tighten Screws on Russian Arctic Shipping With Insurance, Port Bans

Race against the 2026 maintenance season

The proposed maritime services ban raises urgent questions about timing. Arc7 LNG carriers are typically serviced between June and October, when summer ice conditions allow conventional LNG carriers to reach Yamal and free up the ice-class fleet for maintenance.

According to vessel histories, up to six Arc7 carriers are due for servicing this summer, having last visited dry docks in France or Denmark in 2023. These include Rudolf Samoylovich, Georgiy Brusilov, Boris Davydov, Vladimir Vize, Nikolay Zubov and Nikolay Yevgenov.

Two are operated by Seapeak, three by Dynagas, and one by a consortium involving Japan’s MOL and China’s COSCO.

Whether the EU’s 20th sanctions package is agreed and enters into force in time to block that 2026 maintenance window could determine whether operators make a final push to overhaul vessels before access to European yards closes.

Ownership pressures and shadow fleet risks

Beyond maintenance, the sanctions debate intersects with looming ownership questions. Western shipping companies such as Seapeak and Dynagas still own or operate much of the Arc7 fleet, but analysts say that could change as political pressure mounts and economics deteriorate.

From January 1, 2027, the EU will ban imports of Russian LNG, forcing Yamal LNG cargoes to travel longer distances to Asia and elsewhere, increasing costs and tonne-mile demand. Analysts estimate Novatek would need 32–40 additional conventional or low ice-class LNG carriers to support Yamal exports once Europe closes its market.

In 2024, there was already an attempted transfer of an Arc7 carrier built by Hanwha to a UAE-based Moscow-controlled entity, Transshipment FZE, before the deal collapsed, according to shipping industry reporting.

With Novatek having assembled a dozen LNG carriers for its Arctic LNG 2 project legitimate concerns arise that without pre-emptive measures, the Yamal Arc7 vessels could eventually be sold to non-EU entities or fall under Moscow’s direct control. 

It remains to be seen what measures specifically von der Leyen refers to when suggesting that the EU “will make it more difficult for Russia to acquire tankers.”

Incremental squeeze, unanswered questions

If adopted, the proposed ban on LNG tanker maintenance and related services would deal another blow to Russia’s Arctic LNG industry, making operations incrementally more difficult and costly by cutting off access to European expertise.

The key questions now are how quickly the EU can agree to the 20th sanctions package, when any service ban would take effect, and whether it can prevent a last-minute rush by operators to secure maintenance slots at Fayard before the door closes.

While sanctions are tightening, timing will be key to determine their bite and if Russia will have sufficient time to adapt to their impact.