UPDATE 2: US arrests Russia’s Novatek executive Mark Gyetvay on tax charges

(Adds Novatek’s comment in paragraph 7)

WASHINGTON/MOSCOW, Sep 24 (PRIME) -- Russian independent gas producer Novatek’s Deputy CEO Mark Gyetvay was arrested in the U.S.’ Florida under a U.S. $93 million tax evasion case, the U.S. Department of Justice said in a statement seen by PRIME on Friday.

“Mark Anthony Gyetvay allegedly engaged in a scheme to defraud the United States by concealing his ownership and control over substantial offshore assets and by failing to file and pay taxes on millions of dollars of income … which at one point had an aggregate value of over $93 million,” the department said.

Gyetvay was charged with the concealment of $93 million in offshore accounts as part of a major fraud scheme in 2005–2016. If convicted, he faces a maximum penalty of several dozens of years.

The prosecution set the bailout at $80 million, saying that the defendant can easily escape justice with all the means at hand. In addition to being a U.S. citizen, he is also a citizen of Russia, with which the U.S. has no extradition treaty, and of Italy.

The hearings on the case are to resume at 17.00 p.m. Moscow time on Friday.

A spokesperson for the Russian Embassy to the U.S. told PRIME that Gyetvay has not yet applied for consular assistance.

A spokesperson for Novatek told reporters that the company received no official documents regarding the situation. “We have not received any official requests or other documents from the U.S. or other countries regarding Mark Gyetvay ... This situation does not and will not affect the company’s operations.”

Novatek’s stocks decreased 4% at the MOEX opening against the backdrop of Gyetvay’s arrest, but later seemingly stabilized at minus 1.4%.

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