**Ukraine Takes Aim at Russia’s Energy Giant, Will the West Follow?**
In a bold move to dismantle Russia’s war economy, Ukrainian President Volodymyr Zelenskyy has imposed sanctions on major Russian businesses, including Novatek, the country’s second-largest gas producer. The new sanctions list targets Novatek’s crown jewels: its Yamal LNG, Arctic LNG 2, and Murmansk LNG projects, along with key international trading subsidiaries in Singapore and Switzerland.
This move should serve as a wake-up call to the Western world, which continues to buy Russian liquefied natural gas (LNG) despite Ukraine bleeding daily under Russian bombs and missile strikes. Novatek is not just another Russian energy company; it is the largest private natural gas producer in Russia and a strategic enabler of the Kremlin’s imperial ambitions.
**Novatek: A Sanctions-Proof Gas Weapon**
CEO Leonid Mikhelson, deeply embedded in the power structures of Putin’s regime, has secured lucrative tax breaks and gas field concessions by transferring company shares to Putin’s inner circle. But Novatek is not only politically compliant with Putin’s regime; it is directly complicit in its war crimes. Investigative journalists have exposed that Novatek supplies gas to industrial facilities operated by the Russian Ministry of Defence, including ammunition factories fueling the war.
**The Arctic Front of a Global Conflict**
Novatek is also expanding Russia’s fossil fuel empire in the Arctic, one of the world’s most environmentally fragile and geopolitically sensitive regions. Its LNG exports have boomed, with 287 carriers leaving Yamal alone in 2024, each loaded with roughly 74,000 tonnes of supercooled gas. These Arctic megaprojects are central to Russia’s strategy to bypass US and EU sanctions on Russian energy and continue earning billions in foreign revenue.
**LNG: The Kremlin’s Clean-Looking Disguise**
Unlike oil, Russian LNG is still not subject to coordinated Western sanctions. In 2023 and 2024, Russian LNG imports to the EU increased, with major volumes going to France, Spain, and Belgium. Novatek’s LNG reaches Europe not only directly but also through transshipment points near Russian shores and murky intermediaries for spot market trade.
**Ukraine Leads, the West Lags Behind**
Ukraine has now done what the EU and US should have done two years ago: designate Novatek as a key enabler of war of aggression, strip it of international legitimacy, and shut its trading doors abroad. The new sanctions include asset freezes, trade restrictions, and prohibition of collaboration with Novatek’s international entities.
**What Must Be Done Now**
The EU, UK, and US must impose full-swing sanctions on Novatek and its subsidiaries, including international traders and Arctic joint ventures. Ukraine’s allies must also adopt personal sanctions against Novatek CEO Leonid Mikhelson and other top company managers. Novatek’s access to LNG carrier vessels should be blocked, and coordinated action should be taken against any vessels and ports involved in export operations.
The time for half-measures is over. The West must finally follow Ukraine’s lead and take decisive action against Russia’s energy giant.
