U.S. Sanctions Catch Up to Chinese Supplier Wison for Illicit Delivery of a Power Plant to Arctic LNG 2
The Zhoushan Wison Offshore and Marine yard in Zhoushan. (Source: Wison)
As part of a massive sanctions package days before the end of the Biden administration, the U.S. blocked a key Chinese technology provider, Zhoushan Wison Offshore and Marine. The company had been the focus of a HNN investigation in October 2024.
Three months after HNN uncovered an elaborate scheme to deliver a Chinese power plant from a construction yard near Shanghai to Russia’s Arctic LNG 2 project, U.S. authorities included the company behind the activity, Zhoushan Wison Offshore and Marine, in the latest round of sanctions.
The illicit shipping operation lasted nearly two months and involved three heavy lift vessels carrying a massive power plant from the Zhoushan yard via the ice-covered Northern Sea Route to Russia’s Gydan peninsula.
The U.S. State Department details the shipping operation in its press release recounting the scheme in its broad strokes.
“After Zhoushan Wison allowed the modules to be shipped from and depart their facility, the modules were transshipped in intermediary ports in China and transferred between a series of vessels, including U.S.-blocked Hunter Star (IMO 9830769) and Nan Feng Zhi Xing (IMO 9934498), some of which took actions to conceal their identity and location,” a spokesperson for the State Department recounts.
Photos show renaming of vessel
The HNN investigation had procured photographic evidence showing the renaming of one of the heavy lift vessels, Ocean 28. Satellite images also detailed the offloading and reloading of the power plant modules in an attempt to obscure their origin.
Sanctions also extend to the operator of one of the three heavy lift vessels
Throughout October the three vessels carrying the power plant struggled through early season sea ice along the Northern Sea Route arriving at Arctic LNG 2 just before the route became impossible for winter.
“The modules constructed by and shipped from the Zhoushan Wison facility were ultimately offloaded at the Arctic LNG 2 project,” the State Department announcement reads.
Sanctions also extend to the operator of one of the three heavy lift vessels, which had not previously been sanctioned. Hongkong Yaqing Shipping Co Limited operates the heavy lift vessel Ocean 28, which was renamed as part of the shipping operation likely in an attempt to conceal its identity.
Latest company to get sanctioned for Arctic LNG 2
The latest round of measures continues the U.S.’ efforts to curtail the flow of LNG technology and equipment to Russia. The State Department previously sanctioned another Chinese yard, PJOE, as well as Singaporean vessel operator Red Box.
The company’s two specialized polar class heavy lift vessels, Audax and Pugnax, carried LNG modules in violation of Western sanctions to Novatek’s Murmansk construction yard. HNN reported on the company’s activities throughout 2022 and 2023 ultimately ending in the sanctioning of Red Box in May 2024. Its two vessels have since been put up for sales according to industry reporting.
Additional reporting also uncovered the delivery of materials, possibly coil wound heat exchangers or storage tanks, from the port of Antwerp to Sabetta, home of the Yamal LNG project, during the summer of 2024. Though in that case no responsible party or the specific cargo, apart from the vessel operator, could be identified.
