Russia Circumvents Sanctions with Dubai Shell Companies Managing LNG Tankers

A newly established company in Dubai, Matias Ship Management, has taken control of three liquefied natural gas tankers – Velikiy Novgorod, Pskov, and La Perouse – in what appears to be Russia’s latest attempt to evade Western sanctions. These vessels were previously managed by Russian companies and had parts of their management transferred in September, according to the shipping database Equasis.

Russia is using a network of shell companies in Dubai and China to transport gas from its Arctic LNG 2 facility, which has been under US sanctions since last year.

Matias Ship Management’s registered address is in a shared office space at the Meydan Hotel, the same location as another firm, Nur Global Shipping, suspected of assisting Russia in assembling a shadow fleet. The hotel is in a free trade zone criticized for its lack of transparency.

Matias Ship Management lacks a website or contact details, and inquiries to the hotel went unanswered. Ownership of the vessels is now tied to companies at the same address as Matias, and one vessel is owned by Nephrite Shipping Inc., a company registered in Seychelles, a known hub for shell companies. Despite Western sanctions, the vessels have been operating out of the Portovaya LNG export plant in Russia, which is not under direct restrictions. However, the UK sanctioned Velikiy Novgorod and La Perouse recently.