Reuters: Russian LNG behemoth attempts to fix relations with U.S.

Russia’s largest liquefied natural gas producer Novatek is making a lobbying push after Washington D.C. imposed sanctions on its Arctic LNG 2 project, which was set to become Russia’s largest LNG plant.

Novatek’s senior executive and management board member, Denis Solovyov, recently travelled from Moscow to Washington in an attempt to restore relations with the outgoing Biden administration and the incoming Trump’s administration.

Assistant Secretary of State for Energy Resources Geoffrey Pyatt told Reuters that the State Department was aware of Novatek’s visit to Washington. However, he does not expect any major changes, especially while Biden is still in office.

“Now is not the time for business as usual with Russia,” Pyatt said. “Russia is in the penalty box and it’s my job to ensure it stays there as long as possible – certainly as long as the illegal war continues.”

According to Reuters’ sources, Novatek will try to convince the US that because it is exempt from taxes, it shouldn’t be considered a financial contributor to Russia’s war effort. Other big companies like Gazprom, for example, pay corporate tax and are thus contributing to the Russian war machine.

Meanwhile Novatek-owned Yamal LNG that was not sanctioned is subject as zero export duty on LNG and gas condensate, as well as a zero mineral extraction tax rate for production of these fuels. It is not slated to fill Russian coffers until 2030.