US sanctions 2 Indian cos for violating Russia curbs

New Delhi: The outgoing Joe Biden administration in the United States on Friday slapped sanctions on two Indian companies, Skyhart Management Services and Avision Shipping Services, for being allegedly involved in the transportation of Russian liquified natural gas (LNG), violating American curbs.

Skyhart Management Services “is an India-based entity that became the operator of US-designated LNG carrier Mulan shortly before it loaded LNG from USdesignated LLC Arctic LNG 2”, the US State Department said.

Avision Shipping Services “is an India-based entity that became the operator of US-designated LNG carrier New Energy shortly before it loaded LNG from LLC Arctic LNG 2”, it said.

The two companies, both based in Gurgaon, have been penalised for having materially assisted, sponsored or provided financial, material or technological support for, or goods or services to or in support of, Arctic LNG 2, the State Department said. It said two vessels, Pravasi and Onyx, are managed by Avision and are being identified as property in which the company has an interest.

The Indian authorities and entities are studying implications of the sanctions and awaiting the incoming Trump administration’s moves on Russia, said people familiar with the matter.

They said long-term contracts between Russian energy firms and foreign entities may not be impacted by the fresh sanctions.

Long-term Contracts in Favour

This includes contracts with Indian entities. Russian energy firms are steadily moving towards long-term contracts abroad instead of spot selling. Indian authorities are also studying the implications of the impact the recent round of sanctions will have on the global oil prices.

“The United States is imposing sanctions today on more than 200 entities and individuals involved in Russia’s energy sector and identifying more than 180 vessels as blocked property. This wide-ranging, robust action will further constrain revenues from Russia’s energy resources and degrade Putin’s ability to fund his illegal war against Ukraine,” the US State Department said on Friday.

“Of these targets, the Department of State is sanctioning nearly 80 entities and individuals, including those engaged in the active production and export of liquefied natural gas from Russia. Others include those attempting to expand Russia’s oil production capacity; those providing support to the US-sanctioned Arctic LNG 2 project; those involved in Russia’s metals and mining sector; and senior officials of State Atomic Energy Corporation Rosatom,” it said.

It further said that the Department of the Treasury was concurrently sanctioning more than 150 entities and individuals, including major Russian oil producers Gazprom Neft and Surgutneftegas, Russian insurance companies and shadow fleet vessels.