US sanctions leads to force majeure declarations at Russia's Arctic LNG 2.

The US sanctions imposed on Russia's Arctic LNG 2 project have resulted in force majeure declarations and delays in the project's start-up. Novatek, the majority stakeholder in the project, and its western partners have declared force majeure on LNG supplies due to the sanctions. Foreign shareholders, including Chinese companies, have also suspended their participation. Despite the force majeure, there are reports that some LNG production has begun, but it may not be enough to meet contractual obligations. The sanctions pose a threat to long-term sales contracts and may require Novatek to finance the remainder of the project on its own. Chinese partners have requested exemptions to the sanctions, emphasizing the mutual economic cooperation between China and Russia. The sanctions limit new LNG supply at a time when global demand is increasing, potentially leading to higher prices. Arctic LNG 2 is considered a strategic project for Russia's LNG export capabilities, as the country aims to increase its global market share. However, western powers are concerned about Russia's export growth due to its involvement in the conflict in Ukraine. [Extracted from the article]