Page 9 - NorthAmOil Week 39 2021

NorthAmOil COMMENTARY NorthAmOil

Gyetvay’s arrest comes
as a crucial time for
Novatek, which along
with its partners is
seeking some $11bn in
external financing.

false offshore compliance filing with the IRS, in their governments not to support the project
which he “attested that his prior failure to file because of its climate impact.
FBARs and tax returns was non-wilful.” Gyetvay acquired Russian citizenship in 2019,
Gyetvay was due to appear in court on Sep- while retaining his US passport.
tember 23. If he is convicted, he faces up to 20 “We of course are interested in his fate,”
years in prison for each count of wire fraud, Kremlin spokesman Dmitry Peskov said on
five years in prison for each failure to file FBAR September 24. “On the other hand, he is also a
count, five years in prison for tax evasion, five US citizen and as such, bears some tax obliga-
years in prison for making a false statement, tions and we can’t intervene in these processes.”
three years in prison for each count of assisting Novatek issued its own statement on Septem-
in the preparation of a false tax return and one ber 24, stressing that it “was not involved in the 2014 was the
year in prison for each wilful failure to file a tax litigation and does not have any details of the
return count, the DoJ said. court hearings. Novatek monitors the situation year when the
US prosecutors had requested a $80mn bail and will give all necessary support.” US and the
for Gyetvay’s release, which he met this week. “For many years, Mark Gyetvay is the main
He was initially placed under house arrest at his representative of Novatek for the professional EU imposed
home in Florida, but the terms were relaxed on and investment community, making an inval-
September 30, and he is now only subject to GPS uable contribution to Novatek’s success,” the sanctions on
monitoring and a night curfew. He is reported to company continued. “In 2014, Mark Gyetvay
have surrendered his three passports. left the board of directors of Novatek and CFO’s Russia’s oil and
position, and according to the internal Novatek’s gas industry.
Crucial time order, subsequently was not involved in finan-
Novatek’s share price saw its biggest slump in 16 cial activities of the company, including attract-
months when markets opened on September ing financing.”
24. 2014 was the year when the US and the EU
What is more, his arrest comes as a crucial imposed sanctions on Russia’s oil and gas
time for Novatek, which along with its partners industry including measures against Novatek,
is seeking some $11bn in external financing preventing US citizens from involvement with
from international investors for Arctic LNG- financial activities with the firm.
2. The group has reached out to financiers in “The situation has absolutely no effect on
China and Japan, as well as in Europe, though Novatek’s operational and financial activities,”
some European environmentalists have urged Novatek said.™

Week 39 30•September•2021 www. NEWSBASE .com P9