(KYIV, UKRAINE) – Russia is speeding up the creation of a shadow fleet to carry liquefied natural gas ahead of a full European Union ban on Russian LNG imports. The ban takes effect from 1 January 2027.
The Foreign Intelligence Service of Ukraine reported the development. It said the Kremlin is buying old gas carriers on the secondary market and putting the first ships of its own production into service.
More than 65 percent of Russian LNG production comes from Novatek projects. These are Yamal LNG and the sanctioned Arctic LNG 2. About 30 percent comes from Sakhalin 2 operated by Gazprom.
China remains the main buyer of Arctic LNG 2 output. Experts estimate that 11 ships with an average age of about ten years carry the cargoes.
The oil shadow fleet has more than one thousand vessels. Building a similar fleet for LNG is much harder because cryogenic gas carriers are highly technical. They must keep gas in liquid form at about minus 162 degrees Celsius. One modern tanker costs up to 300 million US dollars to build. This is equal to about 236 million British pounds or 274 million euros. Moscow is instead buying ships older than 19 years that global shipping companies are retiring.
At least eight used gas carriers and two new ships from the Zvezda shipyard in Bolshoy Kamen in Primorsky Krai have joined the fleet in the past six months. Most are registered to companies linked to Russia in Dubai, Hong Kong and Singapore. The shadow LNG fleet grew to 25 vessels in 2026. Identified ships include Kosmos, Orion, Merkuriy, Luch, Arctic Express, Avacha and Chaivo. New vessels include Aleksey Kosygin and Konstantin Posiet.
The Zvezda shipyard is building four more gas carriers. Sanctions are holding back the industry. South Korean shipbuilder Hanwha Ocean has six completed Arc7 ice class gas carriers blocked for Arctic projects.
The Foreign Intelligence Service of Ukraine said the shadow fleet will only partly soften the impact of the EU ban. A lack of suitable ships, seasonal limits on Arctic navigation and a shortage of ice class gas carriers will prevent a full shift of supplies to Asia. After the full embargo takes effect, Novatek risks holding unsold products, cutting production or selling LNG at large discounts. This would strengthen the bargaining position of China and other Asian buyers.
About 700 ships carrying Russian oil are currently under sanctions.