Novatek's Profits Plunge 60% in 2025: Sanctions Take Their Toll
Russia's largest liquefied natural gas (LNG) producer and exporter, Novatek, has reported a staggering 60% drop in its 2025 profits compared to the previous year. This significant decline, attributed to $3.9 billion in one-off non-cash items, has left shareholders with a profit of just $2.37 billion. The company's Arctic LNG-2 export project, sanctioned by the U.S., EU, and UK, has been unable to fully capitalize on its potential due to Western customers' reluctance to purchase LNG from Russia. Despite these challenges, Novatek has found a lifeline in China, where the project has continued to ship LNG, even as the facility remains under sanctions. The company's ability to navigate these sanctions and maintain its LNG trade with China is a testament to Russia's determination to secure its energy exports, even in the face of international pressure.
