CHINA’S involvement in Russia’s Arctic LNG-2 liquefied natural gas (LNG) project should not be the target of any third-party intervention or restrictions, its foreign ministry said on Tuesday (Dec 26).

The United States imposed sanctions on Arctic LNG-2 in November as part of a package of sweeping new measures against Moscow over the war in Ukraine.

Fearing the backlash from the sanctions, foreign shareholders suspended participation in the project, renouncing their responsibilities for financing and for offtake contracts for the plant, the daily Kommersant reported on Monday.

Russian controlling shareholder Novatek has declared force majeure due to the US sanctions, sources said. A seller of goods or services may declare force majeure in the event that it cannot supply them due to circumstances beyond its control. In such a case, it must notify the other party and offer an explanation.

Russian news outlet Kommersant reported on Monday that Chinese state-owned oil majors CNOOC and China National Petroleum Corp (CNPC), both stakeholders, had also declared force majeure in the project.

Economic cooperation between China and Russia was in the mutual interest of both countries and “should not be interfered with or restricted by any third party”, Chinese foreign ministry spokesperson Mao Ning said at a regular press conference on Tuesday.

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“China has always opposed unilateral sanctions and long-arm jurisdiction without the basis of international law,” she added.

The Arctic LNG-2 project was due to start production in early 2024. It would be Russia’s third large-scale project for producing LNG, after a Gazprom-led Sakhalin 2 plant in Russia’s Pacific, and Yamal LNG controlled by Novatek.

Novatek holds a 60 per cent stake in the Arctic LNG-2 project; CNOOC and CNPC each have a 10 per cent stake, as do France’s TotalEnergies and a consortium of Japan’s Mitsui & Co and Jogmec. REUTERS