For three years, Europe has vowed to sever its energy ties with Russia, enforcing sanctions and embargoes to cripple Moscow’s war economy. Yet, two recent investigations reveal a stark contradiction: the EU continues to funnel billions of euros to Moscow—primarily through Arctic liquefied natural gas (LNG) and oil—outpacing its financial aid to Ukraine.

A new analysis by Unearthed, Greenpeace UK’s investigative unit, exposes the extent of this contradiction: despite political pledges to reduce Russian energy dependence, European nations spend €2 billion a month on Russian fossil fuels—amounting to €24 billion a year. Meanwhile, the Centre for Research on Energy and Clean Air (CREA) reveals its own figures: in 2024 alone, Europe spent €21.9 billion on Russian fossil fuels. Both estimates exceed the €18.7 billion the EU allocated to Ukraine in financial aid.

Unearthed investigated how Russian LNG reaches Europe—and who keeps buying it. LNG shipments from the Russian Arctic have surged, facilitated by sanctioned nuclear icebreakers. Between December 2023 and May 2024, Atomflot, a Russian state-owned company sanctioned by the UK and EU, deployed nuclear-powered icebreakers to escort LNG tankers from the Yamal LNG project through Arctic waters to European terminals. Even as pipeline gas imports from Russia have plunged, LNG shipments have surged, ensuring a steady flow of Russian fossil fuels into Western markets.

Trade records, satellite tracking data, and corporate contracts traced by Unearthed reveal that major energy firms—including Shell, TotalEnergies, and Naturgy—have continued sourcing Russian LNG despite political pledges. While one Russian energy corridor has been shut down, another remains fully operational, enabled by vessels that sanctions were supposed to block.

Both investigations expose glaring loopholes in the sanctions system—gaps wide enough to allow a fleet of nuclear-powered icebreakers to operate freely.

Shell and energy giants keep buying Russian LNG

The Unearthed investigation revealed that Shell purchased “at least 350,000 tonnes of Russian gas in the past 13 months” using icebreaking services from Atomflot, a Russian nuclear agency subsidiary sanctioned by the UK and US since May 2023. Specifically, five 70,000-tonne LNG shipments were tracked being escorted through frozen Siberian waters by Atomflot’s nuclear icebreakers.

The scale extends beyond Shell, with 30 Russian LNG shipments to EU ports showing that 75% relied on sanctioned icebreakers. These deliveries serviced European customers, including French multinational TotalEnergies and Spanish gas company Naturgy, who both hold substantial long-term contracts for Russian Arctic gas. TotalEnergies maintains a 19.4% stake in Novatek and a 20% share in Yamal LNG, despite efforts to reduce Russian operations.

The European Union sanctioned Atomflot in February 2023, identifying it as “key” to Russia’s “Arctic hydrocarbon strategy” and a significant contributor to Russian war funds. Legal experts consulted by Unearthed highlighted potential sanctions violations, particularly regarding indirect financial benefits to sanctioned entities.

Peter Caldwell, a sanctions expert at Doughty Street chambers, emphasized the legal risks.

“Any business arrangement that is contingent on the participation of a designated person is likely to be at very high risk of a breach of sanctions,” he said.

He noted that even without direct payments, if Atomflot’s participation was factored into purchase costs, this could constitute reasonable cause for suspicion of a sanctions violation.

Sanctioned icebreakers are the backbone of Russia’s LNG trade

The investigation detailed how Atomflot’s icebreakers, including vessels like the Arktika and the 50 Let Pobedy (“50 Years of Victory”) escort LNG tankers through the frozen Gulf of Ob. According to Rosatom’s public fee calculator, each escort service costs approximately 40 million rubles ($380,000).

A specific example from the investigation tracked the Vladimir Voronin tanker, which waited several hours in the Gulf of Ob until the 50 Let Pobedy approached. The tanker then followed the icebreaker closely until reaching open waters, demonstrating the essential role of these sanctioned vessels in maintaining the supply chain.

The shipments originated from Yamal LNG, a landmark Arctic facility majority-owned by Russian producer Novatek. At its 2017 opening, Vladimir Putin himself highlighted its strategic importance.

“This is perhaps the largest step forward in our development of the Arctic. Now we can safely say that Russia will expand through the Arctic this and next century,” he said.

Shell and others defend Russian LNG purchases as scrutiny grows

When confronted with the findings, Shell maintained its compliance stance: “We comply with all applicable sanctions and regulations.” Naturgy emphasized having “no contractual relationship whatsoever with third parties that are subject to sanctions from the EU,” while TotalEnergies declined to comment.

The UK’s Office of Financial Sanctions Implementation (Ofsi) has imposed fines on 10 companies under the sanctions since 2016. It is reportedly investigating 318 further potential breaches, highlighting the growing scrutiny of corporate compliance with sanctions regulations.

Sanctions campaigner Sir Bill Browder drew direct connections to the ongoing war in Ukraine.

“Putin’s murderous war in Ukraine has been sustained primarily by revenues from oil and gas exports. The more he exports, the more Ukrainian soldiers and civilians die,” he noted.

New EU rules aim to close loopholes, but Russian LNG still flows

The Unearthed investigation comes at a critical juncture in European energy politics. Despite ten EU nations calling for a complete ban on Russian LNG imports, Russia remains the EU’s second-largest LNG supplier, with European spending on Russian fossil fuels reaching approximately €2 billion monthly.

Mai Rosner from Global Witness highlighted the multilayered implications.

“Western oil majors are central to multiple overlapping crises. If they’re relying on a sanctioned company to break through Arctic ice – which is already melting because of emission-driven climate change – they have even more to answer for,” he said.

The EU plans to ban transshipments of Russian LNG to destinations beyond Europe starting March 2025, which will end the practice of re-exporting Russian gas through EU ports to Asian and Middle Eastern customers, as documented in Shell’s shipments.

The findings also reveal potential delays in new Arctic gas projects. Sanctions are reportedly hampering the delivery of specialized icebreakers needed for the Arctic 2 LNG facility’s export operations.

The €242 billion contradiction

A study by CREA further underscores the growing reliance on Russian LNG. As pipeline imports declined, LNG exports surged—from 81.3 million tonnes in 2019 to 119 million tonnes in 2022. This shift in energy corridors has allowed Russia to bypass restrictions and sustain fossil fuel export revenues of €242 billion in the third year of its invasion.

Despite growing pressure, the EU’s response remains fragmented. Its 16th round of sanctions targets Russia’s shadow fleet but notably excludes LNG—a critical loophole that continues channeling billions into the Kremlin’s war chest. 

“Purchasing Russian fossil fuels is, quite plainly, akin to sending financial aid to the Kremlin and enabling its invasion. [It’s] a practice that must stop immediately to secure not just Ukraine’s future, but also Europe’s energy security,” Vaibhav Raghunandan, an analyst at Crea, said.

Without decisive action against all Russia’s energy imports, the EU risks prolonging the very war it claims to oppose.

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