The critical cog in Putin’s machine and how British firms help to keep Russian gas flowing into Europe
This is the story of how an obscure company based in an office block on a quiet street in Glasgow became an accessory in Vladimir Putin’s war on Ukraine. It is the story of how Europe and Russia remain locked in a tense relationship of economic dependence, even as they supposedly cut their ties. It is the story of the uncomfortable truth behind why the cost of living crisis came to an end.
But before all of that, it is the story of a ship – a very unusual ship indeed.
If you ever spot the Yakov Gakkel as it sails through the English Channel or the Irish Sea (I first set eyes on it in the Channel but at the time of writing it was sailing northwards, about 20 miles off the coast of Anglesey) you might not find it all that remarkable.
At first glance it looks like many of the other large, nondescript tankers and cargo vessels passing these shores. Its profile is dominated by an enormous blue prow which reaches high out of the water and ends, 50 metres further back, at its unexpectedly angular stern.
Yet the ship’s slightly odd shape – all hull and barely any deck – is the first clue about what makes the Yakov Gakkel so special. Because this is one of the world’s most advanced liquefied natural gas (LNG) tankers, with an unusual trick up its sleeve.
The Yakov Gakkel tanker
LNG tankers are extraordinary ships, with insides so cleverly engineered they are capable of holding vast amounts of natural gas at temperatures of approximately −163C.
For all that the world is embracing renewable energy, natural gas remains one of the most important energy sources, essential for much of Europe’s heating and power, not to mention its industries. For the time being, there is no cheap way of making many industrial products, from glass and paper to critical chemicals and fertilisers, without gas.
Once upon a time, moving natural gas from one part of the world to another necessitated sending it down long, expensive, vulnerable pipelines, meaning only countries with a physical connection to gas producers could receive this vital fuel. But LNG tankers like the Yakov Gakkel are part of the answer to this problem, since they allow gas producers to send it by sea to anywhere with a terminal capable of turning their supercooled methane back into the gas we use to heat our homes and power our grids.
Politicians in Europe promised to end the continent’s reliance on Russian gas
But the Yakov Gakkel can also do something most other LNG tankers cannot, for that enormous blue double hull allows it to carve through ice, enabling it to travel up into the Arctic Circle and back even in the depths of winter.
And that is precisely what this ship does, more or less constantly: travelling back and forth between Siberia and Europe, through winter and summer, bringing copious volumes of gas from Russia to Europe. It is part of the explanation for how Europe never ran out of gas, even after the Russian invasion of Ukraine.
This is not, it’s worth saying, the conventional wisdom. Back when Russia invaded Ukraine, European policymakers declared they planned to eliminate the continent’s reliance on Russian gas – which accounted for roughly a third of their supplies before 2022.
And many assumed that had already happened – especially after the Nord Stream pipeline, the single biggest source of European gas imports, was sabotaged in late 2022. But while volumes of Russian pipeline gas into Europe have dropped dramatically, the amount of Russian LNG coming into Europe has risen to record levels.
LNG tankers sail between Siberia and various ports in Europe, including Zeebrugge
Russia helps Europe replenish gas stores
Today, Europe still depends on Russia for around 15% of its gas, an ever-growing proportion of which now comes in via the sealanes, on tankers like the Yakov Gakkel. And while the US has stepped in to make up some of the volumes lost when those pipelines stopped, only last month Russia overtook the US to become the second biggest provider of gas to the continent. It’s further evidence that those LNG volumes carried on ships through the North Sea, the Irish Sea and the English Channel, are increasing, rather than falling.
This Russian gas has helped Europe replenish its gas stores, it has helped keep the continent’s heavy industry going throughout the Ukraine war. And this dependence has not come cheap: the total amount Europe has paid Russia for LNG since 2022 comes to around €10bn.
The continued presence of Russian gas running through European grids is at least part of the explanation for why European energy prices have fallen so sharply since those post-invasion highs. Back then, many in the market were pricing in a complete end of Russian gas supply to Europe – something that would have had disastrous consequences. But it never actually happened.
Perhaps this explains why the continent’s politicians have, so far, stopped short of banning imports of Russian gas: they are aware that their economy would struggle to withstand another sharp spike in inflation – which would almost certainly eventuate if it stopped taking Russian gas altogether.
Russian gas has helped keep Europe’s heavy industry going throughout the Ukraine war
This week, European leaders agreed to stop allowing Russia to use its ports to “trans-ship” its LNG – essentially acting as a stop-off point towards other destinations. However, those transshipments account for only a fraction – at most a quarter – of the Russian gas coming in on tankers to Europe. The vast majority ends up in Belgium, France and Spain, heating European homes, fuelling power stations and powering machinery in factories.
While European leaders have imposed wide-ranging sanctions and price caps on shipments of oil, no such controls exist for liquefied natural gas. So the Yakov Gakkel and a fleet of LNG tankers carry on sailing between Siberia and various ports in Europe – Zeebrugge, Dunkirk, Montoir and Bilbao – keeping the continent supplied with the Russian hydrocarbons it still cannot live without.
British firm’s role in lucrative trade
But there is another reason why this ship is particularly unique, for the Yakov Gakkel – this critical cog in the financial machine that helps finance the Russian regime – is actually part-owned and operated by a British company.
That brings us back to a street overlooking the Clyde in Glasgow, where, in a glass-fronted office block, you will find the operational headquarters of a company called Seapeak. The chances are you haven’t heard of Seapeak before, but this business owns and operates a fleet of LNG tankers all across the world.
That fleet includes the Yakov Gakkel and four other LNG icebreakers that ply this Siberian trade. That a British company might be facilitating this lucrative trade for Russia might come as a surprise, but there is nothing illegal about this: the sanctions regime on Russia just turns out to be significantly more porous than you might have thought.
We tried repeatedly to speak to Seapeak – to ask them about the Yakov Gakkel and whether they felt it was appropriate – given the UK has forsworn LNG imports – that a British company and British workers are helping administer this Russian trade. We sent emails with questions. However, they did not respond to our calls or our emails.
A security guard at Seapeak’s offices in Glasgow said no one was available to speak to Sky News
When, after weeks of efforts to get a response, I visited their offices in Glasgow, I was met by a security guard who told me Seapeak would not see me without an appointment (which they were refusing to give me). Eventually I was told that if I would not leave they would call the police.
The Vladimir Rusanov off the coast of Zeebrugge
Seapeak is not the only British company helping keep Russian gas flowing. While British insurers are banned from protecting oil tankers carrying Russian crude, there’s no equivalent sanction on Russian LNG ships, with the upshot that many of these tankers are insured by British companies operating out of the Square Mile.
We spent some time tracking another icebreaking tanker, the Vladimir Rusanov, as it approached Zeebrugge. It is insured by the UK P&I Club, which also insures a number of other LNG carriers.
Sky’s Ed Conway gets up close to the Vladimir Rusanov tanker off the coast of Zeebrugge
In a statement, it said: “The UK Club takes great care to observe all applicable sanctions regulations in relation to Russian energy cargoes, but the direct carriage of LNG from Yamal to Zeebrugge, and provision of insurance services for such carriage, is not presently sanctioned. If the EU and G7 nations were to change their policy… the Club would of course comply by adjusting or withdrawing its services, as necessary.”
The transport of Russian gas into Europe – its dependence on British operators and insurers – is only one small example of the loopholes and omissions in the UK sanctions regime. But while government ministers have expressed concern about the effectiveness of the broader sanctions regime, there is still scant evidence they intend to tighten up this corner of it.
Before the election was called the Treasury Select Committee was in the middle of collecting evidence for its own inquiry into the regime, which was expected to focus on insurers of vessels taking Russian goods. However, the inquiry was wound up prematurely when the election was called in May.
Read more on Sky News:
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In the meantime, ships like the Yakov Gakkel carry on taking billions of cubic metres of gas from the gas fields of Yamal in Siberia down to Europe, in exchange for billions of euros. And those and other hydrocarbon revenues are one of the main explanations for how Russia is able to produce more missiles and weapons than the Ukrainians.
So Europe carries on fuelling its industry and its power and heating grids with molecules of gas coming from Siberian gasfields, while assuring itself it’s doing everything it can to fight Vladimir Putin.
It is, in short, a discomforting situation. But given the alternative is to induce another cost of living crisis, there is little appetite in Europe to change things.
A top Iranian official has said the country is prepared to make a number of concessions related to its nuclear programme, in exchange for the lifting of economic sanctions.
It comes as Donald Trump, during his tour of the Middle East, urged Qatar to wield its influence over Iran to persuade it to give up its nuclear programme.
Ali Shamkhani, a top political, military and nuclear adviser to Iranian Supreme Leader Ayatollah Ali Khamenei, spoke to Sky News’ US partner NBC News.
Ali Shamkhani pictured in 2023.
Pic: Reuters
He said Tehran was willing to commit to never making nuclear weapons again, getting rid of its stockpiles of highly enriched uranium, which can be weaponised, agree to only enrich uranium to the lower levels needed for civilian use and allow international inspectors to supervise the process.
This was in exchange for the prospect of the immediate lifting of all economic sanctions on the country.
Asked if Iran would sign an agreement today if those conditions were met, Mr Shamkhani told NBC: “Yes.”
His comments are the clearest public indication of what Iran hopes to get out of a deal and their willingness to do one.
“It’s still possible. If the Americans act as they say, for sure we can have better relations,” Mr Shamkhani added.
However, he expressed frustration at continued threats from the US president, describing them as “all barbed wire” and no olive branch.
Similarly, he warned that Israeli Prime Minister Benjamin Netanyahu might try to derail the deal.
Trump goes to the Middle East
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Trump’s second day in the Middle East
Elsewhere, on the second of three stops on his tour of the Middle East, Mr Trump appealed to Qatar for help in the process.
He urged the country to use its influence over Iran to persuade its leadership to reach a deal with the US and dial back its rapidly advancing nuclear programme.
Mr Trump made the comments during a state dinner.
He said: “I hope you can help me with the Iran situation.
“It’s a perilous situation, and we want to do the right thing.”
Donald Trump listens as Qatar’s Emir Tamim bin Hamad Al Thani (not pictured) speaks at a state dinner.
Pic: Reuters
Over the years, Qatar has played the role of intermediary between the US and Iran and its proxies – including talks with Hamas as its 19-month war with Israel grinds on.
This comes after Mr Trump told a Gulf Cooperation Council meeting in Riyadh, Saudi Arabia, this week that he wants “to make a deal”.
However, he said that as part of any agreement, Iran must end its support of proxy groups throughout the Middle East.
A nuclear Iran
Mr Trump has always said Iran could not be allowed to develop a nuclear weapon.
While Iran has always denied doing so, the UN nuclear watchdog, the International Atomic Energy Agency, has warned that Tehran has enough enriched uranium close to weapons-grade quality for nearly six bombs.
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Trump 100 breaks down the president and Iran
The US and Iran reached a nuclear deal in 2015, under Barack Obama, in which Iran agreed to drastically reduce its stockpile of uranium and limit enriching up to 3.67%.
But Mr Trump scrapped that deal in his first term.
Today, Iran enriches up to 60%, a short, technical step from weapons-grade levels.
Washington and Tehran have engaged in four rounds of talks since early April.
Guests used furniture as an “improvised ladder” to try to escape after the Bayesian superyacht capsized last year, a new safety report has said.
The interim report by the Marine Accident Investigation Branch (MAIB) contains the fullest account yet of how the superyacht capsized and the last-ditch efforts of those on board to get out.
It also found that the boat may have been vulnerable to high winds, with gusts exceeding 70 knots (80.05mph) on the day of the incident.
These “vulnerabilities” were said to be “unknown to either the owner or the crew of Bayesian” as they were not included in the stability information book carried on board.
The boat was owned by British tech tycoon Mike Lynch.
He was among seven people – including his 18-year-old daughter Hannah – who died when it sank on 19 August last year, off the coast of Sicily during a storm.
Work is now underway to recover the ship, although progress has been hampered after a diver recently died during salvage efforts.
MAIB principal investigator Simon Graves previously said it’s expected to be lifted and brought to shore by the end of May.
Chaos on board
The report, published Thursday, detailed the events of 18 and 19 August last year, how the Bayesian and its crew acted as a storm swept in and began tilting the boat overnight.
After the crew was woken up by the strong winds and waves, the captain prepared to manoeuvre the ship, the report said.
But winds were said to have suddenly spiked around 4.06am, causing the boat to “violently” tip 90 degrees in less than 15 seconds.
Mike and Hannah Lynch
“People, furniture and loose items fell across the deck,” the report said, adding that in the carnage that followed, at least five people, including Mr Lynch and the captain, were injured.
One of the crew members, who had been keeping a lookout when the storm struck, was tossed overboard into the sea.
After much of the furniture was thrown across the deck and uprooted from the rooms, two of the guests were forced to use “drawers as an improvised ladder” to escape one room.
Others similarly climbed up the walls to get out as water began flooding in over the rails, and entering the inside of the ship.
Across the capsized vessel, the report explained how various groups scrambled to escape.
The Bayesian superyacht.
Pic: Perini Navi
At the port forward wheelhouse door, one of the deckhands who had been on the lookout that night helped lift two stewards onto the upper deck.
Not seeing anyone else inside, they jumped into the sea, and the door was seemingly shut behind them.
According to the report, with Bayesian now sinking, a number of guests and crew found themselves trapped in an air pocket by the same door.
It was only with the help of an injured guest on the outside that they were able to open the door and escape.
Elsewhere, the chief officer had found Mr Lynch and “pushed [him] through cascading water” to get him to the captain.
The pair managed to evacuate two other guests this way.
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Salvage operations for the Bayesian are expected to continue this month. Pic: AP
However, amid the rough weather, the chief officer was swept to the back of the saloon.
The report details his precarious escape, jumping into the water, diving down and opening the sliding doors in the room to be able to swim free of the ship.
The report said the captain organised the “abandonment” of the ship, and as they floated there, some guests had to use cushions as improvised life rafts.
Inquest proceedings in the UK are looking at the deaths of Mr Lynch and his daughter, as well as Morgan Stanley International bank chairman Jonathan Bloomer and his wife Judy, who were all British nationals.
The others who died in the sinking were US lawyer Chris Morvillo and his wife Neda Morvillo, and Canadian-Antiguan national Recaldo Thomas, who was working as a chef on the vessel.
Fifteen people, including Mr Lynch’s wife Angela Bacares, were rescued.
The fatal boat trip was a celebration of Mr Lynch’s acquittal in a US trial after he was accused of a massive fraud over the sale of Autonomy to Hewlett-Packard in 2011.
Through long, winding roads, we weave through a wonderland. A place of intense beauty, with wide valleys, rushing rivers and terraced hills. The roads are brimming with hand-painted trucks, slowed only by the occasional herd of goats stopping traffic.
We’re entering Pakistan-administered Kashmir, a disputed borderland at the centre of decades of conflict and at the heart of recent escalating tensions with India.
We’re with the Pakistan army on our way to Muzaffarabad, the provincial capital. Few thought this city would be hit in the recent round of strikes, but it was.
Missiles destroyed Bilal Mosque, the roof’s been ripped off, there’s a vast crater in the floor and a huge hole in the ceiling of the prayer room.
The damaged mosque’s roof has been ripped off
Jameel Akhtar is staring into the distance. His 82-year-old father Muhammad was killed in the strike. But he is able to find comfort amid the rubble.
He says: “We are Muslim. My father was martyred in this attack. That’s honour for us. Revenge against India, that is the duty of our armed forces and government and we have full faith in them.”
Jameel Akhtar
The Indian government insist this was a terror site with links to Lashkar-e-Taiba, an Islamist group designated as a “terrorist” organisation by the UN Security Council. But the imam of the mosque, Khursheed Ul Hasan, flatly denies that accusation.
“This is an allegation from their side,” he says. “I’ve been here for 17 years and everybody knows me. I am the leader of this mosque. You can see I’m a normal person. I’m not a terrorist.”
What is striking is how close this mosque is to homes and schools. Across a narrow path, I meet Nimra Safeer who was sleeping next to the mosque when the strike came.
She was hit in the chest with shrapnel and says she now can’t sleep. She is desperate to see her government and New Delhi sit down to talk about the enduring issue that plagues this region.
“Children like me who were attacked, our education system was disturbed,” she tells me. “I want to say to India, whatever your issues, we need to sit down and resolve it. Pakistan wants peace and I want Pakistan to talk on the Kashmir issue.”
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Nimra Safeer was hit with shrapnel
Strongmen, religious nationalism and modern warfare in the mix
But she may be waiting a long time. Islamabad sounds emboldened and hopeful after the recent clashes. But India’s leader Narendra Modi is conceding nothing. He’s made clear he doesn’t want a third party like America trying to mediate and he’s made no commitment to formal talks with Pakistan either.
While the world waits to see what the diplomatic shakedown of this moment is, ordinary people on both sides fear their safety net has slipped, the threat a little deeper, a little closer, a little more dangerous now.
There’s strongmen, religious nationalism and modern warfare in the mix and a fragile truce.
Fatima, right, with her friend Syeda
School also damaged in strike
In Muzaffarabad, right opposite the mosque, is a school that was also damaged. Thankfully, the children were at home sleeping. But in the cold light of day, you can see their unease and upset.
“Our school is destroyed,” Fatima tells me, her eyes narrowing as she speaks. “I have so much anger. Because we study here. Our principal built this school. They built it for us. But India destroyed it.”
A view of Muzaffarabad
The recent skirmishes may have abated for now. But with them has come more animosity calcifying in these beautiful mountain ranges.
India has made clear its muscular response is part of a “new normal” when responding to terror. Pakistan sounds like it feels it’s scored a win against the odds. That’s a defiant dynamic that could easily unravel.
Could pressure from a third party like America signal a sudden shift in this enduring conflict? Right now, that seems unlikely. But this week has been full of surprises.
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