It is a new Russian counter-attack to the sanctions decided after the invasion of Ukraine. “President Vladimir Putin has upped the ante in the economic war between him and the West and its allies,” relief Reuters. “Russia has decided to take control of a major oil and gas project in which Shell has a 27.5% stake”, bring it back BBC.
The Russian president on Thursday (June 30) signed a decree to take control of the Sakhalin 2 facility, off Sakhalin Island, which could force Britain’s Shell and Japan’s Mitsui and Mitsubishi “to give up their investments”.
On Moscow terms
The decree stipulates that Gazprom retains its stake, but that the “other shareholders must ask the Russian government” if they wish to keep their shares in the new company, details the British media. Shell announced in February its intention to sell its stakes in Russia, including the Sakhalin 2 power plant, in the easternmost part of Russia.
According to the presidential decree, the assets will be “transferred to a newly created Russian company, without compensation”, relief Nikkei Asia, what “causes concern in Japan”. The two Japanese investors could be “excluded” of the new entity, their stake having been acquired “only if they accept the conditions of the Russian authorities”, continues the Japanese economic media.
Gazprom held 50% of Sakhalin 2, Shell 27.5%, Mitsui 12.5% and Mitsubishi 10%. Sakhalin 2 produces 10 million tons of liquefied natural gas (LNG) per year, explains the Japanese media, “of which 6 million are destined for Japan”, i.e. 10% of LNG imports into the country.