Russian LNG group lobbies EU think-tanks towards tighter sanctions | USAEMALL.com

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Russia’s largest liquefied natural gas company Novatek has approached think-tanks in Brussels in an effort to lobby against tightening EU sanctions.

The European Policy Centre, Bruegel and the Centre on Regulation in Europe were all approached by Novatek this week, requesting a meeting with the company’s deputy chair Denis Solovyov. All think-tanks, which influence EU decisions with reports and policy proposals, declined the request.

The purpose of the meeting, according to an email sent to EPC and seen by the Financial Times, was “to engage in an open conversation with you regarding energy security, the role of LNG, and recent developments in EU energy policy”.

Another think-tank, which asked not to be named, said it also received the request and said that “for now, the matter is on hold”.

Solovyov’s planned trip to Brussels coincides with heated debates among EU governments about whether the bloc should ban Russian LNG imports, the last fossil fuel that has so far been shielded from restrictions imposed in response to Moscow’s full-scale invasion of Ukraine.

Neither Solovyov nor other Novatek executives, nor the company itself, are subject to individual sanctions in the EU.

The European Commission this week proposed limited bans on Russian LNG going to EU ports that are not linked up to the bloc’s main gas grid. The proposal has yet to garner support among the bloc’s 27 governments and must be unanimously backed to pass.

LNG imports from Russia rose to record levels last year and account for more than 20 per cent of the bloc’s overall imports of the super-chilled fuel. More than 90 per cent of the volumes were sourced from plants majority-owned by Novatek: Yamal LNG and Vysotsk LNG.

Vysotsk was recently added to US sanctions. President Donald Trump has signalled willingness to impose further restrictions on the Russian economy if the Kremlin does not end the war soon.

Reuters reported in December that Solovyov was in Washington to work with lobbyists there to approach US government entities. High North News first reported that Solovyov would travel to Brussels.

“Mr Solovyov is keen to listen, exchange ideas, and better understand the perspectives shaping Europe’s policy direction,” the email read. The Novatek executive “can share insights into how energy suppliers are adapting to Europe’s changing regulatory and geopolitical landscape, providing a real-world industry perspective”, it added.

Novatek did not immediately respond to a request for comment.

Fabian Zuleeg, chief executive of the European Policy Centre, said: “Russian economic actors are trying covertly to influence policymaking in the west to have limitations on their activities lifted.

“The EU should resist the temptation to re-engage economically with Russia, as Moscow will continue to be more than willing to weaponise interdependence in future.”

Simone Tagliapietra, senior fellow at Bruegel, said Europe was “exposed to the risk of a divide-and-rule strategy by Russia” thanks to its lack of a unified approach to Russian gas imports “at a time where many across the continent might be tempted to resort to such gas supplies to lower energy prices”.

Novatek is one of the largest private energy companies in Russia and has been the leading exporter of LNG, a vital cog in the Kremlin’s push to sell more of the seaborne fuel abroad.

But that ambition has been curtailed in recent years, with the US first imposing sanctions on the Novatek-led Arctic LNG 2 project, which was supposed to be Russia’s largest LNG plant, and also ships carrying the fuel.

Arctic LNG 2 has made several shipments since August last year, but none have been delivered to any customers who fear the repercussions of dealing with a US-sanctioned project.

Novatek said its hydrocarbon production last year was 667mn barrels of oil equivalent, an increase of 3.3 per cent compared with 2023. Its natural gas sales volume, including LNG, was 77.7bn cubic meters, a decline of 1.1 per cent compared with 2023.