Page 8 - NorthAmOil Week 39 2021

NorthAmOil COMMENTARY NorthAmOil

Novatek deputy chairman

arrested over allegedly

hiding $93mn from IRS

Novatek’s deputy chairman, Mark Gyetvay, has already

met his $80mn bail but has surrendered his passports and
remains in Florida

US-RUSSIA THE deputy chairman of Russia’s second-larg- between 2005, two years after he was appointed
est gas producer Novatek, Florida businessman as Novatek’s CFO, and 2016. The DoJ said he
WHAT: Mark Gyetvay, has been arrested in the US on had “allegedly received lucrative stock options
Novatek deputy chairman tax charges relating to $93mn that was hidden in and/or stock-based compensation” as part of his
Mark Gyetvay has been offshore accounts. compensation for the role.
indicated for reportedly Gyetvay played a key role in arranging financ- “Beginning in 2005, Gyetvay allegedly opened
hiding $93mn from the ing for Novatek’s ambitious $27bn Yamal LNG the first of two different Swiss bank accounts to
IRS. export project in the Russian Arctic, which hold these assets, which at one point had an
came online in December 2017. His arrest aggregate value of over $93mn,” the DoJ said.
WHY: comes as the Russian gas company continues its “Over a period of several years, Gyetvay alleg-
The Florida businessman search for external financing for its next scheme, edly took steps to conceal his ownership and
has plead not guilty and Arctic LNG-2, which is expected to start pro- control over the foreign accounts and associated
vowed to fight what he duction in 2023. assets, such as removing himself and making
says are “baseless” The US Department of Justice (DoJ) said in a his then-wife, a Russian citizen, the beneficial
charges. statement on September 23 that a federal grand owner of the accounts.”
jury in Fort Myers, Florida, was charging Gyet- Despite being a certified public accountant,
WHAT NEXT: vay “with defrauding the US by not disclosing the department continued, the indictment states
The controversy comes his substantial offshore assets, failing to report that Gyetvay did not his US tax returns on time,
at a time when Novatek substantial income on his tax returns, failing to or the required Reports of Foreign Bank and
is seeking external pay millions of dollars of taxes and submitting Financial Accounts (FBARs) forms that some
financing for Arctic a false offshore compliance filing with the IRS US taxpayers have to submit to disclose control
LNG-2. in an attempt to avoid substantial penalties and over assets maintained in foreign bank accounts.
criminal prosecution.” Those tax returns he did file were false, accord-
The tax charges relate to Gyetvay’s activities ing to the indictment, and he also submitted a

Gyetvay played a
key role in arranging
financing for Novatek’s
ambitious $27bn Yamal
LNG export project.

P8 www. NEWSBASE .com Week 39 30•September•2021