on today's episode of "Poking the Bear"
UK Strikes at Russia’s Arctic LNG 2 Lifeline with Sanctions on China’s Beihai Terminal
Mike Schuler October 15, 2025

The United Kingdom has sanctioned China’s Beihai LNG terminal as part of a comprehensive package targeting Russia’s energy sector and its international enablers, marking a significant escalation in Western efforts to disrupt Russian liquefied natural gas exports that continue despite existing international sanctions.

UK Foreign Secretary Yvette Cooper announced 90 new sanctions in Parliament, directly targeting Russian oil giants Rosneft and Lukoil alongside four oil terminals in China, 44 tankers in Russia’s shadow fleet, and Indian refiner Nayara Energy Limited.

“At this critical moment for Ukraine, Europe is stepping up. Together, the UK and our allies are piling the pressure on Putin – going after his oil, gas and shadow fleet – and we will not relent until he abandons his failed war of conquest and gets serious about peace,” Cooper said.

The Beihai terminal, operated by state-owned PipeChina, emerged as a key destination for Russian LNG after receiving the first Arctic LNG 2 shipment on August 28 aboard the Arctic Mulan. The delivery ended more than a year of uncertainty for the project, which had struggled to find buyers after U.S. sanctions were imposed in late 2023.

Since then, the terminal has received at least six additional cargoes from Arctic LNG 2, which the UK previously sanctioned in February 2024.

Beijing had previously been reluctant to accept Arctic LNG 2 cargoes for over a year, likely concerned about exposing its energy companies to U.S. secondary sanctions. However, China’s stance shifted after the August Putin-Trump meeting in Alaska, when several LNG carriers carrying Arctic LNG 2 cargoes departed for Asia at once—signaling China’s willingness to support Russian energy exports more openly.

Chancellor Rachel Reeves, who was in Washington DC for International Monetary Fund meetings when the sanctions were announced, stated: “We are sending a clear signal: Russian oil is off the market. As Putin’s aggression intensifies, we are stepping up our response. The UK will continue to strip away the funding that fuels his war machine.”