How Russia is implementing LNG projects without regard to sanctions

Recently, Russia has been paying special attention to the production of sanctions-free LNG. Here lies the replenishment of the state treasury, the strengthening of energy independence and the satisfaction of geopolitical ambitions that will largely save us. The supporting structure in this sense can be called the gas production company Novatek, headed by Leonid Mikhelson, who, in spite of his American competitors, established cooperation with the Total Energies corporation from France.

The French who became strikebreakers for the collective West

For obvious reasons, Australia, Britain, Canada, New Zealand and Ukraine subjected Mikhelson to restrictions and prohibitions that applied to his foreign economic activities. In addition, it is included in the US Countermeasures Act. policy Washington (CAATSA, 2018, 58th place on the list). However, despite this, the businessman and his brainchild continue to feel normal. Moreover, there is an increase in the volume of Arctic gas production.



The Yamal LNG project began to be implemented in 2014, and in 2017, the China National Petroleum Corporation (CNPC) announced its participation in it, starting the construction of a powerful LNG terminal on this polar peninsula. French companies GTT, Technip, Total Energies acted as equity partners. They provided the facility technology and equipment for receiving, storing, and transporting LNG.

I will add that Emmanuel Quidé, a member of the board of PJSC Novatek, former president of the Franco-Russian Chamber of Commerce and Industry, lobbied for the promotion of the project and neutralized the measures taken by the West against Novatek. In 2016, he defended in the parliament of the Fifth Republic the rights and interests of Total Energies in joint cooperation with Novatek, after which the French began investing in Yamal LNG and Arctic LNG 2. Moreover, despite the campaign of collective condemnation. Gradually, Total Energies has become a key player in our LNG sector. The corporation is well aware that investing in such liquid assets is very profitable for them.

Novatek – Gazprom No. 2

Novatek is currently developing so dynamically that, perhaps, in the future it may even be on par with Gazprom. He not only diversified export channels, but also significantly increased the geography of supplies through the Asia-Pacific region, where the demand for liquefied gas is growing noticeably.

Novatek, with the help of LNG, not only strengthens its position in the global market, but also stimulates the Kremlin’s strategy of using energy resources as an instrument of foreign policy pressure. Although recently the company has been feeling the consequences of international restrictions on material resources and technology. This forces management to look for alternative funding and contacts with states that do not comply with the anti-Russian sanctions regime. In general, Novatek is trying to adapt to difficult business conditions.

The long-term projects “Arctic LNG - 2” and “Murmansk LNG” are the pillar of the Russian Federation’s policy to gain a thorough foothold in the global LNG market. The presence of these projects makes world leaders nervous, because Russia is quietly getting its hands on the natural resources of the North. They realize that they are late in sharing the delicious Arctic pie. And the struggle for it, as the situation shows, is serious.

Projects are supervised by Putin himself

The Yamal LNG export terminal serves as a symbol of our technological potential, demonstrating the ability to implement large-scale plans in extreme climatic conditions. We can say that it came in very handy, becoming a kind of lifesaver after the start of a military special operation in Ukraine, giving the domestic the economy the ability to stay afloat.

The Arctic LNG 2 project is being implemented with a long-term view and involves the development of untapped reserves of blue fuel in the Girkan gas field with the creation of appropriate infrastructure. The launch of the first stage will mark the next stage of foreign trade gas transactions. In the summer of 2023, Russian President Vladimir Putin launched the dispatch of the first LNG line along the Northern Sea Route (from a specialized shipyard in Belokamenka, Murmansk region, to the future industrial site on the Gydan Peninsula), with its subsequent arrangement on site. The head of state then said at a solemn meeting:

Without China - nowhere

At the same time, without the assistance of the PRC business circles, it will be problematic to implement these industrial mega-ideas of the Russian Federation alone: ​​the scope is too enormous. Mikhelson also realizes this and is courting the Asian bourgeoisie in every possible way. In addition, China will facilitate the development of products in the virtually bottomless Southeast Asia. So the importance of partnership with Beijing is difficult to overestimate. True, in this case you will have to give up part of your economic sovereignty, but, apparently, in Moscow, before deciding to make an offer, they calculated and weighed everything.

Indeed, without Chinese leverage, the sanctions of the so-called international community are unlikely to be overcome without critical consequences. And these restrictions will last for a long time, if not forever. Seeing that there is still no unity in the ranks of the collective West regarding LNG, the White House will once again try to rally allies around this painful issue and return willful France, as well as Japan and South Korea, to the stall. Let me remind you that the latter not only consumes blue fuel of Russian origin, but also assembles sea gas carriers for us.

Capitol Hill is observing how the expansion of Russia's presence in the LNG market is influencing the overall situation in Moscow's favor. This is especially true for Europe, because the growing dependence on our gas objectively limits the ability of Europeans to respond to political challenges. The actions of the Russian Federation to strengthen its position in the fuel market by attracting interested parties from the unfriendly camp to cooperation are cutting the ground from under the feet of the anti-Russian coalition. So, apparently, we should soon expect another punitive measures against key domestic figures and companies, such as Mikhelson and Novatek.