Page 5 - FSUOGM Week 39 2021

FSUOGM COMMENTARY FSUOGM

US taxpayers have to submit to disclose control European environmentalists have urged their
over assets maintained in foreign bank accounts. governments not to support the project because
Those tax returns he did file were false, according of its climate impact.
to the indictment, and he also submitted a false Gyetvay acquired Russian citizenship in
offshore compliance filing with the IRS, in which 2019, while retaining his US passport.
he “attested that his prior failure to file FBARs “We of course are interested in his fate,”
and tax returns was non-wilful.” Kremlin spokesman Dmitry Peskov said
Gyetvay appeared in court on September on September 24. “On the other hand, he is
23. If he is convicted, he faces up to 20 years in also a US citizen and as such, bears some tax
prison for each count of wire fraud, five years obligations and we can’t intervene in these
in prison for each failure to file FBAR count, processes.”
five years in prison for tax evasion, five years in Novatek issued its own statement on Septem-
prison for making a false statement, three years ber 24, stressing that it "was not involved in the
in prison for each count of assisting in the prepa- litigation and does not have any details of the
ration of a false tax return and one year in prison court hearings. Novatek monitors the situation
for each wilful failure to file a tax return count, and will give all necessary support."
the DoJ said. "For many years, Mark Gyetvay is the main
US prosecutors requested a $80mn bail for representative of Novatek for the professional

Gyetvay’s release, which he paid. On Twitter, the and investment community, making an inval-
businessman said on September 26 he had been uable contribution to Novatek's success," the
indicated on "baseless charges" that he already company continued. "In 2014, Mark Gyetvay
settled "through a voluntary programme," add- left the board of directors of Novatek and CFO's
ing that he had pleaded not guilty. position, and according to the internal Novatek's
" I will vigorously fight these charges and will order, subsequently was not involved in financial
continue to discuss gas topics as normal," he said. activities of the company, including attracting
Novatek’s share price saw its biggest slump in financing."
16 months when markets opened on September 2014 was the year when the US and the
24. EU imposed sanctions on Russia's oil and gas
What is more, his arrest comes as a crucial industry including measures against Novatek,
time for Novatek, which along with its partners preventing US citizens from involvement with
is seeking some $11bn in external financing financial activities with the firm.
from international investors for Arctic LNG-2. "The situation has absolutely no effect on
The group has reached out to financiers in China Novatek's operational and financial activities,"
and Japan, as well as in Europe, though some Novatek said. ™

Novatek deputy
chairman Mark
Gyetvay.

Week 39 29•September•2021 www. NEWSBASE .com P5