Kremlin responds to charges of 'nationalization' of gas proj...| MENAFN.COM

Wednesday, 10 August 2022 08:40 GMT

Kremlin responds to charges of 'nationalization' of gas project

(MENAFN) The change in control of the Sakhalin-2 oil and gas project in Russia's Far East should not be seen as nationalization, according to Kremlin spokesperson Dmitry Peskov.

On Thursday, June 30, Russian President Vladimir Putin inked a decree establishing a company to assume all of the rights and liabilities of the Sakhalin Energy Investment Company. According to the agreement, it is up to Moscow to decide whether foreign owners should continue in the company.

When asked if future projects involving Western firms in Russia would follow suit, Peskov said that each issue would be evaluated on an individual basis.

The Kremlin spokesperson went on to say that the administration sees no reason why the supply of liquefied natural gas (LNG) from Sakhalin-2 should be interrupted once the measure is implemented.

Gazprom, Russia's largest energy company, owns 50 percent plus one share of the Sakhalin-2 oil and gas project. Shell of the United Kingdom holds 27.5 percent minus one share, and Mitsui and Mitsubishi of Japan own 12.5 percent and 10%, respectively.


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