Russia’s Foreign Ministry condemned U.S. sanctions imposed on the Arctic LNG 2 project, deeming them unacceptable and detrimental to global energy security. The project, situated in the Arctic’s Gydan Peninsula, stands as a pivotal part of Russia’s strategy to expand its share in the liquefied natural gas (LNG) market.
Maria Zakharova, the ministry’s spokeswoman, criticized the sanctions, labeling them as unacceptable actions that affect numerous countries’ energy balances.
She accused Washington of undermining global economic security by prioritizing its interests, purportedly attempting to outmaneuver competitors and jeopardize energy security worldwide.
Highlighting the collaboration between Russia and China in the Arctic LNG 2 venture, Zakharova emphasized their intent to bolster cooperation, particularly in the energy sector.
Sanctions targeting the project were initiated by Washington as part of broader measures following Russia’s military intervention in Ukraine.
The recent imposition of sanctions by the U.S. has disrupted the participation of foreign stakeholders in the project, causing them to halt their involvement in financing and contractual obligations related to the new plant, as reported by the daily Kommersant.
China’s state-owned companies, CNOOC Ltd and China National Petroleum Corp, each possess a 10% stake in Arctic LNG 2. The project is predominantly controlled by Novatek, Russia’s largest LNG producer, holding a 60% stake.
Additionally, France’s TotalEnergies and Japan’s consortium involving Mitsui and Co and JOGMEC each hold a 10% stake.
The repercussions of the sanctions have led Novatek to declare force majeure concerning LNG supplies from the project, impacting the overall operations, according to industry sources cited by Reuters last week.
