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.
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.
A security guard at Seapeak’s offices in Glasgow said no one was available to speak to Sky News
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.
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 Vladimir Rusanov off the coast of Zeebrugge
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:
EU sanctions target Russian gas for first time
Russian oil still seeping into the UK
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.
The US secretary of state has hailed a “tremendous amount of progress” on peace talks after the US and Ukraine delegations met in Geneva – but said that negotiators would “need more time”.
Marco Rubio said the meetings in Switzerland on Sunday have been “the most productive and meaningful” of the peace process so far.
He said the US was making “some changes” to the peace plan, seemingly based on Ukrainian suggestions, “in the hopes of further narrowing the differences and getting closer to something that both Ukraine and obviously the United States are very comfortable with”.
Mr Rubio struck an optimistic tone talking to the media after discussions but was light on the details, saying there was still work to be done.
US secretary of state Marco Rubio in Geneva after peace talks with Ukraine. Pic: Reuters
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Analysis: Rubio strikes an optimistic tone – but is light on detail
“I don’t want to declare victory or finality here. There’s still some work to be done, but we are much further ahead today at this time than we were when we began this morning and where we were a week ago for certain,” Mr Rubio said.
He also stressed: “We just need more time than what we have today. I honestly believe we’ll get there.”
Sky News’ defence analyst Michael Clarke said on the initial US-Russian 28-point peace plan that it was Donald Trump against the world, with maybe only Moscow on his side.
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Is Trump’s plan a ‘capitulation document’?
Mr Rubio praised the Ukrainian attitude towards the talks and said Mr Trump was “quite pleased” after he previously said in a social media post that Ukraine’s leaders had expressed “ZERO GRATITUDE” for US efforts.
Ukrainian President Volodymyr Zelenskyy said in his nightly address on Sunday that there are signs that “President Trump’s team hears us”.
In a news release on Sunday evening, the White House said the day “marked a significant step forward”.
“Ukrainian representatives stated that, based on the revisions and clarifications presented today, they believe the current draft reflects their national interests and provides credible and enforceable mechanisms to safeguard Ukraine’s security in both the near and long term,” it claimed.
Despite diplomatic progress in Geneva the finish line remains a long way off
We’ve witnessed a day of determined and decidedly frantic diplomacy in this well-heeled city.
Camera crews were perched on street corners and long convoys of black vehicles swept down Geneva’s throughfares as the Ukrainians worked hard to keep the Americans on side.
Secretary of state Marco Rubio did not want to go into details at a press “gaggle” held at the US Mission this evening, but he seemed to think they had made more progress in the last 96 hours than the previous 10 months combined.
The Ukrainian leader Volodymyr Zelenskyy also seemed satisfied enough, posting on Telegram that there were “signals President Trump’s team is hearing us” after a day of “numerous meetings and negotiations”.
That said, we are a long way from the finish line here – something Rubio acknowledged when he said that any proposal agreed here would have to be handed over to the Russians.
At that point, negotiations to stop the war would surely get tougher.
President Putin has shown little or no inclination to stop the conflict thus far.
This, then, is the most important reason the Ukrainians seem determined to keep the Americans on side.
European leaders have presented a counter proposal to the widely criticised US-Russian peace plan, with suggestions including a cap on Ukraine’s peacetime army and readmitting Moscow into the G8.
This will only take place if the plan is agreed to by the US, Russia and Ukraine, and the G7 signs off on the move. Russia was expelled after annexing Crimea in 2014.
The counter proposal also includes US guarantees to Ukraine that mirror NATO’s Article 5 – the idea that “an armed attack against one NATO member shall be considered an attack against them all”.
The initial peace plan was worked up by the White House and Kremlin without Ukraine’s involvement, and it acquiesces to many of Russia’s previous demands.
Read more:
Who actually wrote US-Russian peace plan for Ukraine?
In full: Europe’s 28-point counter proposal to US-Russia plan
It covers a range of issues – from territorial concessions to reconstruction programmes, the future Ukrainian relationship with NATO and the EU, and educational reforms in both Ukraine and Russia.
Footage geolocated by Sky News showed Russian soldiers walking through the Shakhtarskyi neighbourhood on the outskirts of Pokrovsk on Thursday.
The video sheds light on the situation in this key frontline area, as Russian forces slowly encroach on Myrnohrad, the satellite town to Pokrovsk, and one of its last remaining outposts.
Videos geolocated by Sky News show fighting intensifying in recent weeks, as Russian forces attempt to gain control of the towns and their network of road and rail intersections.
Gaining control here would give Russia a base from which to access key cities further north that form part of Ukraine’s “fortress belt”.
Russian forces are advancing from all directions, according to the Institute for the Study of War (ISW), with only one small opening to the northwest of Myrnohrad remaining.
Estimated to be only 3km wide by military experts, this withdrawal corridor is patrolled by Russian drone units which monitor the area for moving vehicles and those who may attempt to leave on foot.
Russian forces have been advancing on Myrnohrad since late October.
Video from a Ukrainian unit in Myrnohad, posted on 29 October, shows a Russian vehicle attempting to enter the town from the northeast. The tank is attacked and soldiers attempting to enter on foot are targeted.
Video posted on 3 November shows Russian forces on the ground in the south of the town.
By 8 November, Russian strikes begin to pummel the northeast of Myrnohrad, the location of many of the town’s high-rise buildings, at that time, held by Ukrainian forces.
George Barros, Russia Team & Geospatial Intelligence Team Lead at ISW, told Sky News that Russian strategy in Pokrovsk has been to erode Ukrainian logistical capacity using drones and artillery over the course of several months.
“After denying supply lines and degrading the frontline forces by essentially cutting them off from behind and starving them out in their positions, then the Russians move forward with their infantry and frontal assaults,” Barros explained.
Capture the flag
For a brief period, it looked as though Russian forces had captured Myrnohrad.
Videos posted on 13 November appeared to show a Russian flag flying over the Myrnohrad mine.
However, video posted the following day showed a Ukrainian drone shooting it down.
Both Russian and Ukrainian forces continue to fight for control of Myrnohrad, with videos posted on the 19 and 20 November showing Russian airstrikes on Ukrainian positions in the town, and Ukrainian drone strikes targeting Russian forces on foot.
While the exact numbers of Russian and Ukrainian forces in the area remains unclear, reports indicate that three key Russian units are active in Pokrovsk and Myrnohrad, and are advancing on the towns from the north and south.
A number of Ukrainian units remain inside the towns, including the 145th Assault regiment and the 32nd, 35th, 38th and 155th Brigades. Reports indicate that more Ukrainian units have been moved into surrounding areas to hold the withdrawal corridor open.
Sky News reached out to the Ukrainian brigades still in Myrnohrad, but they declined to comment, citing military regulations.
Strategic significance
Natia Seskuria, associate international security fellow at the Royal United Services Institute (RUSI), explained that the area is important for the Ukrainians to keep and the Russians to take because of its strategic position.
“Situated at a major road and rail intersection in Donetsk Oblast, Pokrovsk has functioned as a central artery for moving troops, equipment, and supplies to Ukrainian units deployed along the surrounding front.”
Russia “would gain a platform to redirect its offensive efforts toward Ukraine’s principal defensive urban centres… including Kramatorsk and Slovyansk,” Seskuria said.
Read more:
Analysis – Ukraine and its allies are in a perilous moment
Analysis: Europe scrambles at G20 over Ukraine peace plane
G20 lands in South Africa: But who feels forgotten?
Ukrainian and Russian soldiers in Pokrovsk have fought intensely and at close quarters over the last month.
In late October US-made Black Hawk helicopters containing specialist troops directed by Ukrainian military intelligence entered Pokrovsk to try to keep the town.
But as Russian troops advance, Myrnohrad is becoming the last stronghold of Ukrainian forces in the area.
Uncertain future
At least up until 12 November, there were still civilians living in Pokrovsk and Myrnohrad, despite strikes on buildings in both cities.
Residents sit in an armoured vehicle as Ukrainian police officers evacuate them from Pokrovske on 11 November. Source: Reuters
A post made on that day by the Donetsk state regional administration estimated 1,200 people remain living in Pokrovsk and 900 in Myrnohrad.
Evacuation is only possible with the help of the military or police, and it is not clear how many have evacuated in the 11 days since.
Barros of ISW says gaining Pokrovsk would increase Russia’s leverage at the negotiating table.
“If the Russians can successfully convince enough international leaders that, okay, the Russians took Pokrovsk, they’re going to take the next thing, and they’re going take the thing, so now let’s negotiate, then that is a strategic victory for the Russians.”
Production by Michelle Inez Simon, Visual Investigations Producer.
The Data x Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling we aim to better explain the world while also showing how our journalism is done.
Torrential rain, flooding and landslides has left more than 100 people dead or missing in Vietnam.
Rainfall has exceeded 74.8in (1.9 metres) in some parts of central Vietnam over the past week.
The region is a major coffee production belt and home to popular beaches, but it is also prone to storms and floods.
Fatalities have been reported in Dak Lak province and the neighbouring Khanh Hoa province.
Parts of Quy Nhon has been under several feet of water. Pic: picture-alliance/dpa/AP
Footage has been released by local police of a dramatic rescue, involving a drone which airlifted a stranded man to safety from an island in the middle of the Serepok River, Dak Lak province.
The government estimates the flooding has cost the economy around 8.98 trillion dong (£260m).
More than 235,000 houses were flooded and nearly 80,000 hectares of crops were damaged, Vietnam’s disaster agency said.
On Thursday, VietnamNet newspaper said that a suspension bridge on Da Nhim River in Lam Dong province had been swept away.
Video footage posted online showed the bridge being swallowed by the river in just a few seconds.
Naval forces have been deployed to help stranded citizens in Khanh Hoa, the Vietnam News Agency reported, adding that floodwaters had reached record highs in many areas.
Photos shared in state media reports showed residents, including children, sitting on the roofs of flooded houses in Khanh Hoa, Gia Lai and Dak Lak provinces.
Read more from Sky News:
Crisis talks in Geneva on Ukraine
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A seven-year-old girl was rescued late on Wednesday in Da Lat, the capital of Lam Dong province, after being buried by a landslide, the Nhan Dan newspaper reported.
The landslide, triggered by heavy rain, knocked down and buried part of the house where the girl was staying.
She was pulled out after an hour and a half and was taken to hospital with a broken leg, according to the report.
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