Novatek Navigates Sanctions: A Bid to Rebuild US Relations

Russia's largest liquefied natural gas producer, Novatek, is working with lobbyists to repair U.S. relations after sanctions on its Arctic LNG 2 project amid the Ukraine conflict. The company is strategizing to get its flagship project off the sanctions list, hoping for future collaboration.

Russia's major liquefied natural gas (LNG) producer, Novatek, is engaging lobbyists to mend its strained relations with the United States. This initiative follows the imposition of sanctions on its Arctic LNG 2 project, impacted by geopolitical tensions stemming from the Ukraine conflict, as confirmed by two informed sources.

The sanctions represent part of a broader U.S. punitive strategy in response to Russia's 2022 invasion of Ukraine, marking a deterioration in post-Cold War relations. President-Elect Donald Trump's upcoming inauguration is seen by some in Russia as an opportunity for renewed diplomacy, although opinions on potential changes remain divided.

In anticipation of eased tensions, Novatek's executive Denis Solovyov has been in Washington, collaborating with a lobbying firm to negotiate the removal of sanctions. The company asserts its tax-exempt status as evidence of non-participation in Russia's war funding, differentiating itself from other tax-contributing entities.

(With inputs from agencies.)