Executive Of Russian Gas Company Arrested In U.S.
A top official at Russian natural gas producer Novatek who
was arrested in the United States last week on tax charges says he is innocent
and will "vigorously" fight the case.
"On Thursday I was indicted for baseless tax charges
that I already settled through a voluntary program, and pleaded not guilty. I
will vigorously fight these charges and will continue to discuss gas topics as
normal," Mark Gyetvay, the deputy chairman of Novatek’s management board,
said in a tweet on September 26.
The U.S. Department of Justice announced on September 23
that Gyetvay had been arrested on tax charges related to $93 million hidden in
offshore accounts. He faces up to 20 years in prison if convicted.
Gyetvay, who holds passports from both the United States and
Russia, was released on a $80 million bond by a Florida judge, according to
court filings.
As an American citizen, Gyetvay is required to pay U.S.
taxes on his worldwide income even if he spends most of the year in Russia.
The 64-year old has been the face of Novatek to the Western
investment community for more than a decade, conducting the quarterly earnings
conference calls with stock and bond investors as well as speaking at industry
conferences.
Novatek is Russia’s largest independent natural gas producer
and analysts say its phenomenal rise from a bit player in the early 2000s to a
$79 billion company today -- not far behind BP’s $89 billion market value -- is
due in large part to the company’s connections to the Kremlin.
Gennady Timchenko, a key Novatek shareholder, is considered
a close associate of Russian President Vladimir Putin. Their friendship goes
back to the early 1990s.
Gyetvay has been critical of U.S. energy policy toward
Russia.
The United States has been seeking to reduce Europe’s
reliance on Russian energy over the years, including blocking the launch of
Nord Stream 2, a pipeline designed to carry natural gas directly to Germany via
Baltic Sea.
The Nord Stream 2 pipeline will reroute gas currently
transiting Ukraine, depriving Kyiv of as much as $2 billion in revenue. The
United States has called it a political project aimed at hurting Russia’s
smaller neighbor.
The project was completed earlier this month and is now
awaiting certification by German and European authorities, a process that could
take several months.
In the meantime, European gas prices have surged to a record
high amid a supply crunch. Washington is now accusing Russia of withholding
additional natural gas supplies to Europe via Ukraine in order to pressure
authorities to certify Nord Stream 2.
"Another laugher!!!" Gyetvay said in a tweet two
days before his arrest after a U.S. official expressed concern that Russia was
not sending enough gas to Europe. "Who tried to impose relentless
sanctions while promoting [U.S. liquefied natural gas to Europe?] Reality -- we
need ALL gas. Period."
Comments
Post a Comment