The United States has once again imposed sanctions on companies registered in India, this time targeting two entities for attempting to export liquefied natural gas (LNG) from Russia’s Arctic LNG 2 project, a venture heavily sanctioned by the U.S.

These latest sanctions, announced by the U.S. Department of States, underscore Washington’s commitment to undermining Russia’s ability to operationalize the Arctic LNG 2 project, which is expected to produce 19.8 million metric tonnes of LNG annually. The two companies, Gotik Energy Shipping Co (Gotik) and Plio Energy Cargo Shipping OPC Pvt Ltd (Plio Energy), both based in India, have been sanctioned for their involvement in deceptive shipping practices to facilitate the export of LNG from Russia. According to the U.S. State Department, these companies played pivotal roles in attempting to circumvent U.S. sanctions by managing and operating LNG carrier vessels involved in ship-to-ship transfers aimed at loading LNG from the sanctioned Arctic project.

The crux of the issue lies in the deceptive shipping practices employed by these companies. The U.S. State Department highlighted that on August 25, the LNG carrier ‘New Energy’—owned by Gotik and commercially managed by Plio Energy—was engaged in a ship-to-ship transfer with the LNG carrier ‘Pioneer’ to load cargo from the Arctic LNG 2 project. This attempt to transport LNG from Russia’s Arctic project was in direct violation of U.S. sanctions, which had blocked the Pioneer just days earlier, on August 23. Furthermore, it was noted that the New Energy had shut off its automatic identification system (AIS) to obscure its activities and avoid detection, a clear violation of international shipping regulations.In addition to these actions, the State Department also identified and sanctioned another vessel, the ‘Mulan,’ which was managed and operated by Plio Energy. Both vessels—New Energy and Mulan—were added to the U.S. Specially Designated Nationals (SDN) list, alongside the two companies involved.

The sanctions imposed by the U.S. are part of a broader effort to degrade Russia’s ability to operationalize the Arctic LNG 2 project, which has become increasingly challenging due to international sanctions. The Office of Foreign Assets Control (OFAC), part of the U.S. Department of Treasury, has updated its SDN list to include Gotik and Plio Energy, along with the two ships they operate. The SDN list is a comprehensive list of individuals, entities, and companies that are subject to economic and trade sanctions by the U.S. government. By being added to this list, Gotik and Plio Energy are now barred from engaging in any business with U.S. entities or individuals, effectively cutting them off from the global financial system. OFAC’s statement added that Gotik’s registered office was located in Thane, Maharashtra, India, with another office in Liberia, while Plio Energy’s sole listed address was in Thane. This move by the U.S. to target India-registered companies raises significant questions about the role of Indian entities in supporting Russia’s energy sector, particularly in the face of stringent sanctions.

This is not the first time that Indian companies have been caught in the crosshairs of U.S. sanctions for their involvement in facilitating Russian LNG exports. In August, another India-registered company, Ocean Speedstar Solutions OPC Pvt Ltd, based in Mumbai, faced similar sanctions for attempting to transport LNG from the Arctic LNG 2 project. This raises concerns about the repeated involvement of Indian companies in what appears to be a broader effort to bypass U.S. sanctions and continue Russia’s energy exports. In Ocean Speedstar’s case, the U.S. Department of Treasury revealed that the company had acquired two LNG carriers, ‘Pioneer’ and ‘Asya Energy,’ both of which were used in deceptive practices similar to those employed by Gotik and Plio Energy. The vessels shut off their AIS and manipulated their tracking systems to obscure their activities while loading LNG at the Arctic LNG 2 facility. Satellite imagery confirmed that both vessels had entered Russian territorial waters in July and loaded LNG from the Utrenneye terminal at the Arctic facility.

The involvement of multiple India-registered companies in circumventing U.S. sanctions raises serious questions about India’s role in the broader geopolitical landscape. While India has not taken a hard stance against Russia following the invasion of Ukraine and has continued to maintain diplomatic and economic ties, its companies’ involvement in activities that violate U.S. sanctions could complicate its relationship with Washington. The repeated violations by Indian entities suggest a potential pattern of complicity or, at the very least, a lack of enforcement of international sanctions within India’s jurisdiction. This could put the Indian government in a difficult position, as it seeks to balance its longstanding relationship with Russia against its strategic partnership with the United States.

The U.S. sanctions on Gotik and Plio Energy are a clear signal that Washington will not tolerate any attempts to undermine its efforts to isolate Russia’s energy sector. For India, these developments present a diplomatic challenge. As Indian companies continue to be sanctioned for their involvement in Russian energy exports, the Indian government may find itself increasingly pressured to take a clearer stance on its relations with Russia and its adherence to international sanctions. The Arctic LNG 2 project is a key part of Russia’s energy strategy, and the U.S. is determined to degrade its operational capacity. However, as long as third-party entities, such as the India-registered companies involved, continue to facilitate Russia’s energy exports, the sanctions regime will remain porous. It remains to be seen how India will respond to the growing involvement of its companies in circumventing sanctions and whether this will impact its broader diplomatic ties with both the U.S. and Russia.