Novatek, Russia's largest liquefied natural gas producer, is working with lobbyists to try to restore relations with the United States after Washington imposed sanctions on its giant Arctic LNG-2 project. About this reported the Reuters.
On November 2, 2023, the "Arctic LNG-2" project of the Novatek company, which was supposed to become the largest LNG plant in Russia, was put on the US sanctions list.
Donald Trump's return to the White House on January 20 is greeted with cautious optimism by some in Russia, although others believe it will make little difference.
According to one of the sources, Novatek seeks to restore relations with the West in anticipation of the end of the war in Ukraine promised by Trump.
According to the interlocutor, senior executive director and board member of the company Denis Solovyov recently traveled from Moscow to Washington to start work with an American lobbying firm.
According to sources, "Novatek" and lobbyists plan to contact the American government structures in the coming weeks.
A second source said Novatek hopes to remove its flagship Arctic LNG 2 project from the current sanctions list.
Both sources said Novatek will use its tax status to appeal to the West and prove it is not a financial donor to Russia's military effort.
Other Russian gas companies, such as Gazprom, pay corporate tax, which is considered one of the largest contributors to the Russian budget and therefore indirectly finances the war.
Yamal LNG, owned by Novatek and not subject to sanctions, enjoys significant tax incentives, such as zero export duty on LNG and gas condensate, as well as a zero mining tax rate for the production of these fuels, as shown in a presentation for investors.
Assistant Secretary of State for Energy Jeffery Payette told Reuters that the State Department was aware of Novatek's visit to Washington, but suggested the company would not make significant progress with the Biden administration in the remaining weeks of his term in office. .
"Now is not the time for normal relations with Russia, it is in the penalty box and my job is to keep it there as long as possible - certainly as long as the illegal war continuesPayette said.
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