US senators say Trump has failed to prevent Russian LNG from helping fund war in Ukraine

(Corrects paragraphs 5 and 6 to show that the statement is by Senator Elizabeth Warren only, not by all four Democratic senators)

By Timothy Gardner

WASHINGTON (Reuters) -Four Democratic U.S. senators said on Monday that lax enforcement by the Trump administration of sanctions on Russia's Arctic LNG 2 export terminal allows China to buy discounted liquefied natural gas and helps Moscow fund the war in Ukraine.

The lawmakers, including Senator Elizabeth Warren, urged the Trump administration in September to resume targeted sanctions on Russian energy supplies, saying it was giving China a "free pass" by allowing it to buy discounted LNG from Arctic LNG 2. 

The administration imposed its first direct sanctions on Russia in October on its two biggest oil and gas companies, Lukoil and Rosneft, and said further sanctions on Russian entities could follow. 

But the Arctic LNG 2 operator, Novatek, which is co-owned by some of Russian President Vladimir Putin's closest allies, has sold about 14 cargoes of LNG since August, with Chinese buyers receiving discounts of about 30% to 40%.

"This is just the latest example of Donald Trump failing to put pressure on Putin and bring Russia to the negotiating table," Warren said in a statement.

BILLIONS IN REVENUE

LNG from Arctic LNG 2 is an "energy revenue stream worth billions for Putin’s war machine that had previously been disrupted by consistent, targeted U.S. sanctions," Warren said. Former President Joe Biden first imposed sanctions on the project in late 2023. 

The senators pressed the administration on what they called lax sanctions enforcement as U.S. and Ukrainian officials said they had drafted a "refined peace framework" after talks in Geneva on Sunday, without providing specifics.

A White House official said Trump wants an end to the killing and for Russia and Ukraine to make a peace deal. "President Trump believes that there is a chance to end this senseless war if flexibility is shown."

The State Department did not immediately respond to requests for comment. 

The State Department said in responses dated on Friday to Warren and other senators who sent the September letter, including Tim Kaine and Chris Van Hollen, "we will give careful consideration to imposing sanctions in response," to information the senators had sent it about Arctic LNG 2.

The senators said the State Department had answered none of their questions about imposing sanctions on the facility. 

The senators said Congress must require a review of any proposed unwinding of U.S. sanctions imposed on Russia for its Ukraine invasion, "instead of letting Trump cede the rest of our critical leverage." 

(Reporting by Timothy Gardner in WashingtonEditing by Rod Nickel and Matthew Lewis)