What's happened
Satellite images and ship-tracking data reveal sanctioned Russian LNG vessels, including the Perle and CCH Gas, engaging in ship-to-ship transfers near Malaysia. These operations involve vessels linked to Russian exports, despite US sanctions, highlighting ongoing efforts to bypass restrictions and export Russian gas to China.
What's behind the headline?
The ongoing transfer of Russian LNG vessels off Malaysia underscores the resilience of Russia's efforts to circumvent sanctions. Satellite images and ship-tracking data confirm that vessels like the Perle and CCH Gas are engaged in ship-to-ship transfers, a tactic often used to mask cargo origin and destination. The Perle, managed by a Dubai-based company linked to Russian shipping efforts, has been involved in transporting LNG from Arctic LNG 2 and Portovaya, despite US sanctions. This indicates a deliberate attempt by Russia to maintain its LNG exports to China, even as Western sanctions tighten.
This situation reveals a broader geopolitical strategy where Russia leverages shadow fleets and covert routes to sustain its energy exports. The use of ships like the CCH Gas, now under Pacific Gas ownership, further complicates enforcement efforts. The timing aligns with Russian President Vladimir Putin's visit to China, suggesting a political dimension to these shipments.
The implications are significant: Western sanctions are being challenged by sophisticated maritime tactics, and the global LNG market remains vulnerable to covert Russian activity. This could lead to increased tensions and a reevaluation of sanction effectiveness, as well as a potential shift in global energy supply chains.
What the papers say
Bloomberg reports that the vessel CCH Gas was taken over by Pacific Gas earlier this year, and satellite images from October 18 and 23 show the vessel engaged in ship-to-ship transfers near Malaysia, despite being sanctioned by the US. The Perle, also sanctioned, has been tracked moving from Russia to China, with data indicating it loaded LNG from the Arctic LNG 2 facility in late August. Bloomberg highlights the management of the Perle by Dreamer Shipmanagement LLC-FZ, linked to Russian efforts to bypass sanctions. The South China Morning Post emphasizes the unusual nature of LNG transfers in this region, noting that such operations are more common with crude oil and often involve shadow fleets. Both sources underscore the ongoing challenge Western nations face in enforcing sanctions against Russia's energy exports, especially as vessels employ covert tactics to continue shipments to China.
How we got here
Since early 2025, Russia has faced sanctions targeting its LNG exports, notably from Arctic LNG 2 and Portovaya. Despite these measures, Russian vessels have continued to export gas, often through complex routes and ship-to-ship transfers to evade detection. The US and other Western nations have sought to curb these activities, but vessels like the Perle and CCH Gas appear to be involved in ongoing efforts to supply China with sanctioned Russian LNG, using shadow fleets and covert maneuvers.
Go deeper
Common question
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How is Russia bypassing US sanctions on gas exports?
Satellite images and ship-tracking data reveal that Russia is using covert methods to bypass US sanctions on its LNG exports. The Russian tanker Perle has been spotted engaging in ship-to-ship transfers near Malaysia, suggesting efforts to reroute sanctioned gas to Asian markets. This raises questions about how Russia is managing to evade sanctions and what this means for global energy supplies. Below, we explore the tactics involved and the broader implications for international sanctions enforcement.
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How Are Russia's LNG Ships Bypassing Sanctions in Southeast Asia?
Recent satellite images and ship-tracking data reveal that Russia is finding ways to continue exporting LNG despite Western sanctions. Ships like the Perle and Iris are involved in covert operations, including ship-to-ship transfers near Malaysia, raising questions about how sanctions are being bypassed and what this means for global energy markets. Below, we explore the details of these activities and their broader implications.
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The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.
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Malaysia is a country in Southeast Asia. The federal constitutional monarchy consists of thirteen states and three federal territories, separated by the South China Sea into two regions, Peninsular Malaysia and Borneo's East Malaysia.