Russia Taps US Lobbyists to Push for Sanctions Relief on $20 Billion LNG Project

Two American firms, AF International and Qorvis Holding, signed contracts to lobby on behalf of the Russian Union of Oil and Gas Producers (SNGPR) in the United States, Russian media Novaya Gazeta Europe reported on February 7.

The deals, signed in December 2024, are aimed at securing the removal of US sanctions on Novatek’s Arctic LNG 2 project—the largest liquefied natural gas (LNG) initiative in Russia, in which Novatek holds a 60% stake alongside foreign partners.

The SNGPR is a non-profit organization that promotes the interests of oil and gas companies within Russian government circles.

Its members include major industry players like Transneft, Gazprom Neft, Tatneft, Lukoil, and Surgutneftegaz—all with ties to the Russian government. Notably, Gennady Timchenko, a close friend of Russian leader Vladimir Putin, is a key shareholder in Novatek. The company’s CEO, Leonid Mikhelson, has repeatedly lobbied Putin for decisions favorable to his business, Novaya Gazeta noted.

Under the contract with SNGPR, AF International agreed to deliver the union’s stance on the global gas market and LNG project development to US government institutions and officials for $60,000. Qorvis Holding, meanwhile, will provide lobbying services on similar issues, including LNG and sanctions compliance. The contract explicitly states that SNGPR is linked to Novatek, whose Arctic LNG 2 project has been under US sanctions since fall 2023. The agreement refers to Novatek as an “affiliated organization” of the Russian non-profit.

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Novatek opted for an indirect route to hire lobbyists in the US due to sanctions restrictions. US sanctions, first partially imposed on Novatek in 2014, prohibit any actions aimed at circumventing or violating these restrictions.

Russia’s Arctic LNG 2 project, launched in 2018, was designed to produce 19.8 million tons of LNG annually across three production lines. The first line began operations in August 2023 and produced its initial batch of LNG in December.

However, US sanctions prevented the shipment of this gas and effectively halted further work at the site. The second production line was delivered to its future site in August 2024, while the third line’s construction has been delayed, with its launch postponed from 2026 to 2028. Novatek had estimated the project’s total cost at over $20 billion.

Previously, it was reported that equipment from Chinese company Wison New Energies, critical for constructing the third production line, was sent back to China after the firm faced potential inclusion on the US sanctions list.