In the icy expanse above the Arctic Circle, a fleet of specialised ice-class vessels has long been the lifeline for Russia’s Yamal LNG project, one of the country’s most valuable energy assets. These Arc7 ice-class carriers, capable of smashing through sea ice up to two meters thick, are now at the heart of a sanctions battle that could reshape global energy flows. The UK government’s recent decision to ban British companies from providing maritime services to vessels carrying Russian liquefied natural gas (LNG) has sent shockwaves through the industry. This move, announced by Foreign Secretary Yvette Cooper at a G7 meeting in Canada, extends beyond a simple import restriction, targeting the entire ecosystem of shipping, insurance, and maintenance that sustains Russian LNG exports.
Seapeak Maritime (Glasgow) Ltd., a UK-registered arm of the broader Seapeak group, finds itself at the epicenter of this storm. The company controls six of the fifteen specialised carriers serving the Yamal LNG project. Last year, these six ships transported 7.56 million tonnes of liquified gas, worth nearly $4 billion. The new regulations, set to be phased in throughout 2026, will prohibit Seapeak from providing shipping, insurance, or any other maritime-related services for Russian LNG cargoes. A UK government spokesperson confirmed that Seapeak is included within the scope of the sanctions with no exceptions. This unambiguous stance places enormous operational pressure on Seapeak’s fleet, which has historically relied on UK-based management, insurance, and technical support for its highly specialised Arctic operations.
The UK’s decision to ban direct imports of Russian LNG in January 2023 was a significant step, but it only stopped gas from entering British ports. Russian exports to Asia and other markets continued unabated, often facilitated by London-based insurers and service providers. This new ban closes that loophole entirely. The policy’s focus on Arctic operations is particularly consequential. The Yamal LNG facility, located on Russia’s remote Yamal Peninsula, depends on its fleet of ice-breaking carriers to navigate the harsh conditions of the Kara Sea. These vessels are engineering marvels—double-hulled, with reinforced bows and powerful propulsion systems that allow them to operate year-round in conditions that would trap conventional ships.
However, four of Seapeak’s six Arctic carriers are insured through UK-based protection and indemnity mutuals like Charles Taylor & Co. Without this insurance coverage, the ships cannot legally operate in international waters. Finding alternative underwriters willing to cover such specialised, high-value vessels engaged in sanctioned trade will be extraordinarily difficult and expensive. The UK government confirmed to maritime analysts that the ban applies unequivocally to all British companies, with no exemptions for Arctic operations or existing contracts.
For Russia, the Yamal operation depends on fifteen ice-class carriers, all currently insured by companies in nations that comply with G7 sanctions. Seapeak’s vessels alone account for 40 percent of Yamal’s total export capacity. Losing access to that fleet would significantly reduce the project’s ability to deliver gas to global markets. Russia has attempted to build its way out of the problem, but sanctions have crippled these efforts. The Zvezda shipyard in the Russian Far East, tasked with producing domestically-built replacement carriers, has delivered just a single vessel for Arctic operations in recent years. Moscow has also tried to assemble a “shadow fleet” of conventional LNG tankers, but these vessels lack ice-breaking capability and can only operate during the brief summer navigation season.
The stakes extend beyond Russia’s balance sheet. Last year, Yamal LNG supplied approximately 20 percent of all liquefied natural gas imported by European nations. While the European Union has decided to ban Russian gas imports starting January 2027, the disruption will still ripple through energy markets. Asian buyers, particularly China, have absorbed increasing volumes of Russian Arctic LNG as European demand decreases. However, maintaining year-round flows without proper ice-class carriers and Western insurance remains a fundamental challenge.
Industry analysts suggest Seapeak might attempt to sell or transfer its Arctic vessels to third-party operators in non-sanctioned jurisdictions. However, given the long-term charter agreements with Yamal running through at least 2045, finding buyers willing to navigate the legal and financial risks would be extremely difficult. Any potential purchaser would need to secure alternative insurance, financing, and maintenance arrangements—all while operating vessels that have become toxic assets in Western-aligned markets.
The broader message is unmistakable. For three years, Western sanctions on Russian energy focused primarily on oil exports, with mechanisms like price caps designed to restrict revenues while maintaining supply. LNG received comparatively lighter treatment, partly because European nations remained dependent on Russian gas even after the invasion of Ukraine. That calculation has