Russia demands exceeding USD1 billion in damages from UK oil leading company
Date
10/22/2024 9:04:50 AM
(MENAFN) The Russian Prosecutor General’s office is pursuing more than EUR1 billion (approximately USD1.09 billion) in damages from British energy giant Shell, following the company's exit from a significant joint venture in the Sakhalin-2 liquefied natural gas (LNG) project. This information was disclosed by the Moscow Arbitration Court on Tuesday.
Shell decided to withdraw from the Sakhalin-2 project in 2022 in response to the geopolitical tensions resulting from the Ukraine conflict. The Sakhalin-2 development, located on Sakhalin Island in Russia's Far East, is notable for housing the country's first LNG plant, making it a crucial asset in Russia's energy landscape.
In a legal move filed earlier this month, the Prosecutor General's office targeted eight subsidiaries of the Anglo-Dutch company, which include Shell plc, Shell Energy Europe Limited, and several others involved in the project. According to the court's press service, the claim seeks damages exceeding €1 billion.
The lawsuit also names several third parties, including Gazprom Export, the Russian Energy Ministry, the Sakhalin regional government, and the companies associated with Sakhalin Energy Investment. This indicates a broad coalition of Russian entities supporting the legal action against Shell.
In a related context, Russian President Vladimir Putin signed a decree in 2022 that resulted in the transfer of ownership of Sakhalin Energy, previously the operator of the Sakhalin-2 project, to a new operator, Sakhalin Energy LLC. The decree allowed foreign stakeholders, including Japanese companies Mitsui and Mitsubishi, to retain their investments in the new structure proportionate to their previous ownership levels.
This unfolding legal battle underscores the growing tensions between Russia and Western companies in the wake of the Ukraine conflict, highlighting the challenges and uncertainties surrounding international energy investments in the current geopolitical climate.
MENAFN22102024000045015687ID1108806449
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.