LNG Power Play: Inside Russia's Export Expansion with Leonid Mikhelson

In today’s world, where energy resources serve as a linchpin for economic development and geopolitical leverage, Russia holds a pivotal role in the LNG export domain.

Over recent years, there has been a noticeable surge in the Kremlin’s export expansion, particularly in the liquefied natural gas sector.

Moscow’s ambitions reach beyond fortifying its energy dominance; it aims to bolster its geopolitical standing, particularly amidst hybrid aggression against the EU and the invasion of Ukraine.

At the forefront of this expansion is Leonid Mikhelson, the driving force behind the gas production company “Novatek,” spearheading LNG export activities with the backing of the French company Total Energies.

Leonid Mikhelson.

Mikhelson, the prominent shareholder and head of both “Novatek” and the petrochemical holding “Sibur,” boasts an illustrious background.

Born in 1955 and educated at the Samara Institute of Oil and Gas, he began his career constructing gas pipelines in Siberia.

Following the dissolution of the Soviet Union, he actively engaged in privatization, founding and nurturing one of Russia’s largest private energy entities.

His astute business acumen has elevated him to the ranks of Russia’s wealthiest entrepreneurs and global figures.

Under Mikhelson’s stewardship, “Novatek” has transcended its modest beginnings to emerge as a key player in the natural gas market, often likened to the “second Gazprom” due to its size and influence in the industry.

Despite facing sanctions from several nations, including the UK, Canada, Australia, New Zealand, and Ukraine, Mikhelson and “Novatek” persist in expanding their operations, particularly in the Arctic region.

The Yamal LNG Project:

The “Yamal LNG” project, initiated in the wake of the annexation of Crimea and the occupation of Donbas in 2014, epitomizes the collaboration between Russia and China in the Arctic.

French companies, including Total Energies, Technip, and GTT, played a pivotal role by providing cutting-edge technologies and equipment for LNG production, storage, and transportation.

Despite facing US sanctions, “Novatek” managed to push forward with the “Yamal LNG” project, showcasing significant progress in harnessing Arctic resources through multinational cooperation and lobbying efforts in France.

Emanuel Kide, a board member of “Novatek” and president of the Franco-Russian Chamber of Commerce and Industry, utilized his political sway to ensure project viability and ward off sanctions against the company.

Ethical Considerations:

However, Total Energies’ collaboration with “Novatek” and investments in Russian LNG projects, including “Yamal LNG” and “Arctic LNG 2,” raise ethical concerns.

Collaboration amidst sanctions and military aggression perpetuates financing for Russia’s military endeavors, bolsters its economy, and facilitates continued aggression.

Despite actions that contravene international law and humanitarian principles, Total Energies plays a crucial role in advancing Russia’s LNG sector.