Sakhalin-II was controlled by multinationals Shell, Mitsui and Mitsubishi; decision was released by the Russian government
Russian President Vladimir Putin has broken with the international partnership over the oil and gas project, called Sakhalin-II. The platform was intended to develop oil fields in Western Siberia.
The multinationals Shell, Mitsui and Mitsubishi together had 50% of the initiative. The rest belonged to Russian state-owned Gazprom. Putin signed the decree to break off the partnership on Thursday (30.jun.2022).
In the decision, Putin orders the creation of a public company, to assume ownership of the Sakhalin-II. International shareholders will have until August to decide whether to keep the investments.
According to Putin’s decree, the reason for the breakup would be the “threats to Russia’s national interests and economic security.”.
The British company Shell, which had a 27.5% stake in the gas, announced on February 28 who would sell their shares in the joint venture – which encompasses other undertakings.
This Friday (July 1), Japan’s deputy secretary, Seiji Kihara, said that the government is aware of the decree and is studying the impacts. Japanese conglomerate Mitsui owns 12.5% of the project, while Mitsubishi owns 10%.
“We are currently studying the question of what will happen to the participation of Japanese companies in the Sakhalin-II project, as well as the effect of the question on LNG imports from Japan,” Kihara said, according to the Russian news agency laugh.