Putin signed a decree to seize Shell’s Russian gas project rights. This could make it more difficult for the British energy giant Shell to invest in Russia.
According to the Kremlin, the rights to Sakhalin-2 were to be transferred to a Russian company. This was due to threats to national security and national interests.
Shareholders have one month to decide whether or not they want to take stakes in the company. They were also warned that they might not receive full compensation if they do so.
Shell, which owns a 27.5pc share in Sakhalin-2, could be affected by the move.
As part of Russia’s withdrawal, the firm had previously stated that it would sell its holdings worth $4.1bn (£3.4bn).
Although it is unclear whether Shell will find a buyer for the company, there have been rumours about potential deals between Chinese state-owned energy companies and Shell.
Shell spokesperson said that Shell, as a shareholder has always acted in Sakhalin-2’s best interests and in compliance with all legal requirements. We are aware that the decree has been issued and we are currently evaluating its implications.
