According to Reuters on December 25, Russia's "Kommersant" said on the 25th that due to sanctions, foreign shareholders suspended their participation in the Russian Arctic LNG No. 2 project and waived their responsibility for financing and offtake contracts for Russia's new LNG plant.
The project is seen as a key factor in Russia's efforts to increase its global LNG market share from 8% to 20% by 2030, but the project is already facing difficulties due to US sanctions and a lack of gas carriers, the report said.
The Arctic LNG 2 project is controlled by Novatek, Russia's largest LNG producer, which holds a 60% stake in the project.
Kommersant said that the suspension of foreign shareholders' participation could lead to the loss of its long-term LNG contract for the Arctic LNG II project, while Novatek will have to finance the project separately and ship gas on the spot market.
The initial investment in the Arctic LNG II project is reported to be $21 billion. It is already facing difficulties in raising funds after Western countries imposed sanctions on Russia.
According to the report, the European Union may also impose restrictions on Russian LNG**. (Compiled by Zhang Lin).