Russian Foreign Ministry spokeswoman Maria Zakharova attends a news conference in Moscow, Russia, April 4, 2023. REUTERS/Maxim Shemetov/File Photo Acquire Licensing Rights

U.S. sanctions targeting Russia's massive Arctic LNG 2 project are unacceptable and undermine global energy security, the Russian foreign ministry's spokeswoman said on Wednesday.

The project, located in the Gydan Peninsula in the Arctic, is a key element in Russia's efforts to boost its share of the global liquefied natural gas (LNG) market to a fifth by 2030-2035 from 8% now.

Western countries have imposed wide-ranging sanctions against Russian firms and individuals following the Kremlin's decision to send tens of thousands of troops into Ukraine in Feb. 2022, seeking to cripple Moscow's military might.

Last month, Washington announced sanctions against Arctic LNG 2.

"We consider such actions unacceptable, especially in relation to such large international commercial projects as Arctic LNG 2, which affect the energy balance of many states," spokeswoman Maria Zakharova told a weekly briefing.

"The situation around Arctic LNG 2 once again confirms the destructive role for global economic security played by Washington, which speaks of the need to maintain this security but in fact, by pursuing its own selfish interests, tries to oust competitors and destroy global energy security."

Zakharova also said cooperation between Russia and China, whose companies are stakeholders in the liquefied natural gas project, would continue to strengthen, including in the energy sphere.

Russia is the fourth-largest producer of sea-borne liquefied natural gas behind the United States, Qatar and Australia.

The daily Kommersant reported on Monday that foreign shareholders had suspended participation in the Arctic LNG 2 project due to the sanctions, renouncing their responsibilities for financing and for offtake contracts for the new plant.

China's state oil majors CNOOC Ltd (0883.HK) and China National Petroleum Corp (CNPC) each have a 10% stake in the project, which is controlled by Novatek (NVTK.MM), Russia's largest LNG producer and owner of a 60% stake in the project.

France's TotalEnergies (TTEF.PA) and a consortium of Japan's Mitsui and Co (8031.T) and JOGMEC also have a 10% stake each.

Sanctions also resulted in Novatek declaring force majeure over LNG supplies from the project, industry sources told Reuters last week.

by reuters