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Russia’s Novatek Struggles to Trade Europe Gas on Ukraine Recoil

  • Gas hub trading unit in Switzerland unable to find business
  • Clients and peers cut company after invasion of Ukraine
An LNG plant, operated by Novatek, in Sabetta, Russia.

An LNG plant, operated by Novatek, in Sabetta, Russia.

Source: Bloomberg

Novatek PJSC, Russia’s largest independent natural gas producer, is grappling with a slowdown in business in Europe following the invasion of Ukraine that threatens its spot market trading desk in Switzerland.

Novatek Gas & Power, a unit of the Russian firm, is struggling to attract business in European gas hubs as clients and peers cut business ties, according to three people with knowledge of the matter who requested anonymity to discuss private details. The company is also unable to find new traders to replace recent departures, which may ultimately result in the desk temporarily halting operations or closing altogether, the people said.