Novatek Reports 60% Profit Drop in 2025 Amid Sanctions Impact
Novatek, Russia's largest LNG producer, reported a 60% profit decline in 2025, attributing it to non-cash items of $3.9 billion. Profit for shareholders fell to $2.37 billion from $6.38 billion in 2024. The company noted that its Arctic LNG 2 project began regular exports to China, despite sanctions from the US, EU, and UK. Trade has continued using the Suez Canal due to harsh Arctic conditions limiting access to the Northern Sea Route. Russia maintains active LNG trade with China, aided by two ice-class vessels.
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Novatek reported a 60% decrease in profit for 2025, with net income for shareholders dropping to $2.37 billion from $6.38 billion in 2024. The decline was significantly impacted by $3.9 billion in non-cash items.
The company's Arctic LNG 2 project began regular exports to China last year, despite Western sanctions aimed at reducing Russian oil and gas revenues. Trading routes have shifted to the Suez Canal due to severe winter conditions affecting the Northern Sea Route. Russia continues to trade LNG with China, supported by two ice-class tankers, enhancing export capabilities despite sanctions.
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