In a bold move, the US government has placed sanctions on two Indian companies for their alleged involvement in Russia’s massive Arctic LNG 2 project, which is part of the country’s major efforts to produce liquefied natural gas (LNG). These sanctions, announced on Thursday, target the Mumbai-based companies Gotik and Plio Energy, claiming they are linked to Russia's energy giant Novatek.

But what is Arctic LNG 2, and why are these companies being targeted?

What Is the Arctic LNG 2 Project?

Arctic LNG 2 is one of Russia’s largest upcoming projects to produce LNG, a crucial fuel in today’s energy landscape. Russia is one of the top LNG exporters in the world, behind only the US, Qatar, and Australia. The Arctic LNG 2 project alone aims to produce nearly 20 million metric tons of LNG each year. Major international players, including France's TotalEnergies, China’s CNPC and CNOOC, and a Japanese consortium, all held stakes in this project.

However, due to the ongoing sanc...