Russia will establish a company that will take over all rights and obligations of the Sakhalin Energy Investment Co. amid Western sanctions imposed on Moscow, a decree signed by President Vladimir Putin said on Thursday, reported Reuters.
The five-page decree signals it is up to the government of sanctions-hit Russia to decide whether foreign shareholders are to remain in the Sakhalin Energy Investment Co., a consortium for developing the Sakhalin-2 oil and gas project in Russia’s Far East. Sakhalin-2 is a major liquefied natural gas (LNG) export terminal.
Its shareholders include Russian gas giant Gazprom (50% plus one share) and Shell (27.5% minus one share). Leading Japanese traders Mitsui & Co. and Mitsubishi Corp. own stakes of 12.5% and 10%, respectively.
Gazprom will keep its stake, but other shareholders are expected to ask the Russian government for a stake in the new company within one month, the decree said, according to Reuters.
The government will then decide if the other shareholders will be allowed to keep their stake.
If they are not permitted to keep their stake, the government will sell it and keep the proceeds in a special account of the shareholder.