President Vladimir Putin has 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 ¡ª including Shell PLC and two Japanese trading houses ¡ª 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 stakes in the new company, and those who opt out may not be fully compensated, the statement said.
The move could prove complicated for energy giant Shell, which holds a 27.5% stake in the liquefied natural gas facility in Russia¡¯s Far East. The energy giant announced it would exit the project after Russia invaded Ukraine, and also said it wouldn¡¯t commit to any new investments in the country.
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