National Agency on Corruption Prevention lists Belgian gas company Fluxys as international war sponsor

The National Agency on Corruption Prevention (NACP) listed the Belgian independent operator of the Fluxys gas system as an international sponsor of the war. The company promotes the export of Russian LNG, which provides financing for the Russian invasion of Ukraine.

Source: NACP 

The NACP explained that Fluxys provides capacity for the storage and transhipment of Russian liquefied gas Yamal LNG at its terminal in Zeebrugge.

At the same time, the majority share of Yamal LNG belongs to the Russian gas company Novatek, which is directly involved in the financing of military aggression and war crimes in Ukraine.

Quote: "A detailed analysis by the Institute for Energy Economics and Financial Analysis (IEEFA) in 2022 showed that Fluxys and its shareholders profited by facilitating the export of Russian LNG to Asian, South American and Middle Eastern markets, especially in the winter months of 2021-2022, which exacerbated the European energy crisis and increased profits for Novatek.

The Novatek company is owned by Russian oligarchs Leonid Mikhelson and Gennady Timchenko. It is the main supplier of Russian liquefied natural gas to international markets. Mikhelson and Timchenko are part of Vladimir Putin's inner circle and with the help of his regime seized the shares of international companies in Russian oil and gas projects," the NACP said in a statement.

The NACP added that Novatek is the largest private producer of natural gas in Russia. In July 2014, the company was included in the sanctions lists of the USA and Canada. In 2016, the United States imposed sanctions against several subsidiary companies of Novatek. On 2 November 2023, the United States imposed sanctions against the Arctic LNG 2 project, intended to double Novatek's export capacity.

"At least a third of Russian budget spending goes to the war. Fluxys services help the Russian Federation to replenish it by EUR 800 million this year," said head of the NACP, Oleksandr Novikov.

It is noted that the main shareholders of Fluxys are Belgian municipalities (77.41%) and the Belgian federal government (3.44%).

Both sides say they have high regard for international humanitarian law, which prohibits deliberate attacks on civilians or critical civilian infrastructure. These commitments contradict the actual continuation of cooperation with the Russian company Novatek, NACP emphasises.

Thus, Fluxys continued cooperation with Yamal LNG and Novatek during 2022 and 2023. International experts say that Russia expects to receive up to EUR 800 million in export tax revenue, which is possible thanks to the transshipment of LNG in Zeebrugge in 2023. Only 7% of this gas goes to EU markets.

Fluxys receives EUR 50 million annually for this service under a long-term contract signed in 2015.

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