Russia's Novatek working with lobbyists to rebuild ties with US

Russia's largest liquefied natural gas producer, Novatek, is working with lobbyists in an attempt to rebuild US relations after Washington imposed sanctions on its mammoth Arctic LNG 2 project.

Novatek is seeking to rebuild relations with the West in anticipation of an end to the war in Ukraine, sources told Reuters on Friday.

Its senior executive and management board member, Denis Solovyov, travelled from Moscow to Washington in recent days to begin work with a US lobbying firm.

Novatek and the lobbyists plan to approach US government entities in the coming weeks, the sources said.

Assistant Secretary of State for Energy Resources Geoffrey Pyatt told Reuters that the State Department was aware of Novatek's visit to Washington but suggested that the company would make little headway with President Joe Biden's administration during its remaining weeks 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."

Off sanctions list

Russia's relationship with the US hit a post-Cold War low after Ukraine war in 2022, with the Biden administration imposing sanctions on hundreds of entities and individuals for backing the war effort.

These include Novatek's Arctic LNG 2, which was set to become Russia's largest LNG plant.

A second source said that Novatek hopes to get its flagship Arctic LNG 2 off the current sanctions list.

Sanctions have led to Arctic LNG 2 declaring force majeure on supplies and suspending production.

Both sources, who spoke on condition of anonymity due to the sensitivity of the matter, said that Novatek will use its tax status to appeal to the West and make the case that it is not a financial contributor to Russia's war effort.

The return of US President-elect Donald Trump to the White House on January 20 is being viewed with cautious optimism by some in Russia, although others think it will change little.

Trump pledged during his campaign to end the nearly three-year-old war within 24 hours of his inauguration, if not before.