Russian oligarchs have hired lobbyists in the US to lift sanctions on the Arctic LNG 2 project.
Two prominent oligarchs have engaged US lobbyists in an effort to rescind penalties on their LNG ventures.
Novatek, Russia’s premier producer of liquefied natural gas (LNG), is actively working with lobbyists to lessen the effect of US restrictions placed on its significant Arctic LNG 2 project, Reuters reveals, citing well-informed sources.
The agency reports Novatek aims to initiate discussions with Western nations pending the conclusion of the military operation in Ukraine. One source indicates that Denis Solovyov, the company’s Deputy Chairman of the Board, recently traveled to Washington for discussions with an American lobbying establishment. The company anticipates petitioning US governmental bodies in the coming weeks to remove Arctic LNG 2 from the list of sanctioned entities.
Penalties implemented in November 2023 precipitated a halt in production at Arctic LNG 2 and a declaration of force majeure regarding deliveries. The project, initiated in 2019, is being executed on the Gydan Peninsula with participation from French, Chinese, and Japanese investors. Novatek possesses 60% of the equity, and Gennady Timchenko, a billionaire and close associate of Vladimir Putin, is among the co-owners.
Sources mention that the company intends to leverage its unique tax status as a negotiating instrument. Unlike other Russian gas enterprises, Novatek is free from corporate taxes until 2030 due to the Yamal LNG project. The company hopes to persuade the West that it is not financing the Yamal LNG initiative, Reuters specifies.
Assistant Secretary of State for Energy Resources Geoffrey Pyatt acknowledged that the State Department is aware of the Novatek representative's trip to the United States. Nonetheless, Pyatt remains doubtful about the Russian company’s chances. “This is not the opportune moment for normal interactions with Russia. Russia needs to remain under pressure—at least while this special operation persists. And my responsibility is to ensure precisely that,” he clarified.
The penalties did not directly target Novatek, but they did affect Arctic LNG 2. In addition to the limitations, the project is grappling with a scarcity of specialized tankers for the transport of liquefied gas, which, as reported by Reuters, was an additional element in the production halt in April 2024.
Denis Solovyov chose not to comment. The company itself also refrained from responding to the agency's inquiries.
