Russia’s plan to rapidly expand liquefied natural gas (LNG) exports is being hampered by US sanctions that are delaying shipments from a major new project, Bloomberg reports.

The Arctic LNG 2 facility started production in December, but still could not export gas due to US restrictions, writes Bloomberg, citing Agerpres. Production fell significantly in February, according to data analyzed by Bloomberg. Vedomosti, which first reported the drop in production, reported that Arctic LNG 2 cannot export fuel and does not have enough storage space.

Novatek PJSC, the main shareholder of the Arctic Circle division, intended to start deliveries by March 31. Officials at the Russian energy company did not respond to requests for comment, Bloomberg reports.

Novatek has been in talks to sell LNG to buyers in China, but it is unclear when it will be able to do so due to fears of US retaliation, the sources told Bloomberg on condition of anonymity.

These developments show how difficult it will be for Russia to achieve its goal of tripling LNG exports by 2030. The country, which was the world’s largest exporter of liquefied natural gas before the invasion of Ukraine prompted Europe to abandon pipeline purchases, exported about 32 million tons of gas. Last year, LNG accounted for 412 million tons of total world trade.

The United States imposed sanctions on Novatek in November, but also prompted the exit of other Arctic LNG 2 investors, including TotalEnergies SE and Mitsui & Co, both of which declared force majeure.

Gas production from the Arctic LNG 2 project was 83 million cubic meters in February, compared with 250 million cubic meters in January and 425 million cubic meters in December, according to data analyzed by Bloomberg.

Novatek plans to ship most of its LNG to China via the Northern Sea Route, which connects Europe and Asia, and is also trying to find buyers in India, the sources said.