The Chinese Foreign Ministry spoke out against US sanctions regarding the Arctic LNG-2 project

Chinese Foreign Ministry representative Mao Ning spoke out against interference by third countries in trade cooperation between China and Russia. According to her, unilateral sanctions “will not help solve problems.” Last week Bloomberg, citing sources reportedthat Chinese CNOOC and CNPC are going to ask the US authorities to release the contracts of the project, which came under sanctions in November, from restrictions. The Chinese authorities did not comment on the information.

“Facts have proven that sanctions and pressure cannot solve problems, but, on the contrary, can lead to side effects,” the diplomat said (quoted by “RIA News”). She noted that “China has always opposed unilateral sanctions and extraterritorial jurisdiction.”

As I wrote “Kommersant”, foreign shareholders of the Arctic LNG-2 project declared force majeure under their agreements in the project. Sources in the Russian government told Kommersant that we are talking about the French TotalEnergies, Chinese CNPC and CNOOC, as well as a consortium of Japanese Mitsui and JOGMEC. Each of them has a 10% stake in the project. NOVATEK owns 60% of the project.

Earlier today it became known that the Japanese company Mitsui & Co. recalled all its employees from the NOVATEK project. It is noted that the recall of employees is aimed at protecting them from US sanctions. Their departure does not mean that the Japanese company will leave the business.

Kremlin refused comment on the situation. Presidential press secretary Dmitry Peskov redirected the question of how freezing the participation of foreign investors in the Arctic LNG-2 project will affect its implementation by the Russian company.

Arctic LNG 2 is the second major project of NOVATEK (MOEX: NVTK) for the export of liquefied natural gas. On November 2, it came under US sanctions, which included a ban on all operations with Arctic LNG-2. At the same time, a special OFAC license, until January 31, 2024, allows certain transactions necessary for “the alienation, transfer or facilitation of the alienation, or transfer of debt or assets” of the company.

Read more in the Kommersant article. “Arctic LNG-2 is now on its own”.

Alexandra Goroshilova