The decision by Russia to transfer ownership of Sakhalin-2, one of the largest LNG projects in the world, might kick out the West from key energy deals as a reply to the sanctions.
A decree transferring ownership of the giant Sakhalin-2 oil and liquefied natural gas project to a new Russian company has been signed by President Vladimir Putin. The decision, which was taken in response to "unfriendly states'" actions, could drive away foreign stakeholders, including investors from the United Kingdom and Japan.
What is Sakhalin-2?
With an output of 12 million tons per year, it is one of the largest LNG projects in the world. The partnership between UK-based Shell, Japan's Mitsui and Mitsubishi, and Russia's Gazprom was established in 2009. The facility is situated in the Pacific Ocean, north of Japan, on the Russian island of Sakhalin. It mainly provides LNG to markets in Asia.
Who are the stakeholders in the project?
The Sakhalin Energy Investment Company oversaw the ...