		<div class="wpcnt">
			<div class="wpa">
				<span class="wpa-about">Advertisements</span>
				<div class="u top_amp">
							<amp-ad width="300" height="265"
		 type="pubmine"
		 data-siteid="111265417"
		 data-section="2">
		</amp-ad>
				</div>
			</div>
		</div><p>Russian president Vladimir Putin has handed full control over a major oil and natural gas project partly owned by Shell and two Japanese companies to a newly created Russian firm, a bold move amid spiralling tensions with the West over Moscow’s military action in Ukraine.</p>
<p>Mr Putin’s decree late Thursday orders the creation of a new company that would take over ownership of Sakhalin Energy Investment Co, which is nearly 50% controlled by British energy giant Shell and Japan-based Mitsui and Mitsubishi.</p>
<p>His order named “threats to Russia’s national interests and its economic security” as the reason for the move at Sakhalin-2, one of the world’s largest export-orientated oil and natural gas projects.</p>
<p>The presidential order gives the foreign firms a month to decide if they want to retain the same shares in the new company.</p>
<p>Russian state-controlled natural gas giant Gazprom had a controlling stake in Sakhalin-2, the country’s first offshore gas project that accounts for about 4% of the world’s market for liquefied natural gas, or LNG.</p>
<p>Japan, South Korea and China are the main customers for the project’s oil and LNG exports.’</p>
<p><!--Ads1--></p>
<p>Kremlin spokesman Dmitry Peskov said Friday that there is no reason to expect a shutdown of supplies following Mr Putin’s order.</p>
<figure id="attachment_174535" aria-describedby="caption-attachment-174535" style="width: 1192px" class="wp-caption alignnone"><img src="https://londonglossy.com/wp-content/uploads/2022/07/4B5B1B79-AFCE-437C-9366-5855F543C27D.jpeg" alt="" width="1192" height="1105" class="size-full wp-image-174535" /><figcaption id="caption-attachment-174535" class="wp-caption-text">Sakhalin Energy Investment Co, which is nearly 50% controlled by British energy giant Shell and Japan-based Mitsui and Mitsubishi.</figcaption></figure>
<p>Shell held a 27.5% stake in the project.</p>
<p>After the start of the Russian military action in Ukraine, Shell announced its decision to pull out of all of its Russian investments, a move that it said has cost at least £4.16 billion.</p>
<p>The company also holds 50% stakes in two other joint ventures with Gazprom to develop oil fields.</p>
<p>Shell said Friday that it is studying Mr Putin’s order, which has thrown its investment in the joint venture into doubt.</p>
<p>“As a shareholder, Shell has always acted in the best interests of Sakhalin-2 and in accordance with all applicable legal requirements,” the company said in a statement.</p>
<p>“We are aware of the decree and are assessing its implications.”</p>
<p>Seiji Kihara, deputy chief secretary of the Japanese cabinet, said the government was reviewing its impact.</p>
<p><!--Ads2--></p>
<p>Japan-based Mitsui owns 12.5% of the project, and Mitsubishi holds 10%.</p>
<p>Mr Kihara emphasised that the project should not be undermined because it “is pertinent to Japan’s energy security”, adding that “anything that harms our resource rights is unacceptable”.</p>
<p>“We are scrutinising Russia’s intentions and the background behind this,” he said. “We are looking into the details and, for future steps, I don’t have any prediction for you at this point.”</p>
<p>Asked if Mr Putin’s move with Sakhalin-2 could herald a similar action against other joint ventures involving foreign shareholders, Mr Peskov said: “There can’t be any general rule here.”</p>
<p>He added that “each case will be considered separately”.</p>
<p>Sakhalin-2 includes three offshore platforms, an onshore processing facility, 187 miles of offshore pipelines, 1,000 miles of onshore pipelines, an oil export terminal and an LNG plant.</p>
			<div style="padding-bottom:15px;" class="wordads-tag" data-slot-type="belowpost">
				<div id="atatags-dynamic-belowpost-68cd3c6e49248">
					<script type="text/javascript">
						window.getAdSnippetCallback = function () {
							if ( false === ( window.isWatlV1 ?? false ) ) {
								// Use Aditude scripts.
								window.tudeMappings = window.tudeMappings || [];
								window.tudeMappings.push( {
									divId: 'atatags-dynamic-belowpost-68cd3c6e49248',
									format: 'belowpost',
								} );
							}
						}

						if ( document.readyState === 'loading' ) {
							document.addEventListener( 'DOMContentLoaded', window.getAdSnippetCallback );
						} else {
							window.getAdSnippetCallback();
						}
					</script>
				</div>
			</div>
Discover more from London Glossy Post
Subscribe to get the latest posts sent to your email.
