US arrests CFO of Russian Natural Gas Group Novatek
Last Thursday, the US Department of Justice arrested Mark Gyetvay, CFO of Russian natural gas group Novatek for alleged tax evasion relating to tens of millions of dollars in offshore accounts. Gyetvay allegedly tried to defraud the US by hiding ownership and control of offshore assets valued at more than $93 million and for failing to pay taxes on his income.
Novatek, Russia’s largest independent natural gas producer, has enjoyed huge growth in the 2000s, due in part to the company’s high-profile Russian connections. Novatek is associated with Russian billionaire Leonid Mikhelson, the top shareholder and Gennady Timchenko, a friend of Russian President Vladimir Putin.
Gyetvay, American by birth, was granted a Russian passport by Putin in 2019 while working at Novatek, a move that suggests the Kremlin was helping Gyetvay around US sanction restrictions against Russia.
United States law requires citizens to pay taxes on worldwide income, even if they earn their money outside the US or spend most of their time outside of the country.
Following the arrest, Gyetvay has been released on an $80 million bond to Florida court. He tweeted yesterday that he intends to “vigorously” fight the charges laid. A spokesperson from the Kremlin also confirmed that they were prepared to provide legal assistance to him but cannot intervene in the matter as it is a US internal tax issue.
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