Sources say that Russia's Novatek employs lobbyists in order to improve relations with the US.
US sanctions targeted Novatek Arctic LNG 2 Project
Arctic LNG 2 production suspended, sources claim
Source: Novatek wants to rebuild relationships with West
Anna Hirtenstein & Marwa Rashed
Two sources familiar with the situation said that Novatek, Russia's largest producer of liquefied gas, is working with lobbyists to try and rebuild U.S. relationships after Washington imposed sanctions against its mammoth Arctic LNG 2 Project.
After the 2022 invasion of Ukraine by Russia, the relationship between the United States and Russia reached a post Cold War low. President Joe Biden’s administration imposed sanctions on hundreds entities and individuals who supported the war effort.
Novatek's Arctic LNG 2 was to be the largest LNG plant in Russia.
Some Russians are cautiously optimistic about the return of U.S. president-elect Donald Trump on Jan. 20, while others believe it will not change much.
Trump promised during his election campaign that he would end the war, which has lasted nearly three years, within 24 hours or sooner. Novatek wants to rebuild its relations with the West in anticipation of the end of the war in Ukraine.
Denis Solovyov - its senior executive and member of the management board - travelled to Washington from Moscow in recent days, according to sources, to start working with a U.S. firm that does lobbying.
Sources said that Novatek and its lobbyists will be approaching U.S. government agencies in the next few weeks.
Solovyov refused to comment on the phone when contacted. Novatek has not responded to a comment request. The U.S. State Department didn't immediately respond to an inquiry for comment.
Novatek wants to remove its Arctic LNG 2 flagship from the current list of sanctions, a second source stated. Arctic LNG 2 has declared force majeure and suspended its production due to sanctions.
Two sources who requested anonymity because the subject was sensitive said Novatek would use its tax status as a way to convince the West that it does not contribute financially to Russia's military effort.
Gazprom and other Russian gas companies pay corporate taxes, which are considered to be one of the biggest contributors to Russia’s budget. This indirectly funds the war.
A presentation made to investors reveals that Novatek's Yamal LNG is exempt from sanctions and enjoys substantial tax benefits, including zero export duty for LNG and gas condensate as well as a zero rate of mineral extraction tax on the production of these fuels.
The Kremlin will not be paid until 2030 if the project is profitable. (Reporting and editing by Nina Chestney, Alexander Smith and Anna Hirtenstein in London)
(source: Reuters)
