Argentine state-owned importer of LNG, Enarsa, has called off the unloading of an LNG cargo of Russian produce. The cargo was loaded at the Yamal terminal in Siberia and transshipped to the vessel Flex Artemis in France destined for discharge close to Buenos Aires.

News stories suggest that Enarsa had called off the transaction after getting wind of the origin of the cargo. Another unnamed source mentions that it was the transaction bank that refused to cooperate fearing it would breach sanctions.

The EU has no sanctions against the seller of the cargo in Russia, Novatek, who is the largest independent producer in Russia of LNG. Nor has the EU generally sanctioned trade in Russian LNG. The UK has sanctioned LNG, but only the import of LNG and the acquisition of LNG with the intention of it entering the UK. Other jurisdictions have adopted sanctions against Novatek, such as the US and the UK. Argentina has no independent sanctions against Russia and must have stepped back from the deal referring to sanctions from other jurisdictions.

The question has come up whether the MFA’s members would be prohibited from supplying marine fuel to the ship.

Anders Amstrup Fournais of Hafnia Law Firm says that “although caution is advised with respect to all dealings that have a Russian nexus, there is no asset freeze, transaction ban or trade restrictions that would prohibit a bunker supplier from delivering fuel to the Flex Artemis, provided the LNG cargo is not transported to or imported into the UK.”

A good example of how complex the ever burning topic of sanctions is.

You can connect with MFA Partner Hafnia Law Firm by email [email protected]