Putin Swoop on Gas Plant Risks Forcing Foreign Partners Out
- Shell, Mitsubishi, Mitsui hold stakes in Sakhalin-2 LNG site
- Decree will transfer rights in plant to a new Russian company
Sakhalin-2 is an integrated oil and gas project.
Source: Shell
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President Vladimir Putin signed a decree to transfer rights to the Sakhalin-2 natural gas project to a new Russian company, a move that could force foreign owners including Shell Plc to abandon their investment in the facility.
The decree cites threats to Russia’s national interests and economic security, according to a statement dated June 30, issued by the Kremlin and signed by Putin. Stakeholders have one month to say whether they’ll take a holding in the new company, and those who opt out may not be fully compensated, the statement said.