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Putin signs decree axing time limit for sale of Shell's stake in Sakhalin 2 project

On June 30, President Vladimir Putin signed a decree under which a Russian stock company would replace Sakhalin Energy as the operator of the Sakhalin-2 project

MOSCOW, December 30. /TASS/. Russian President Vladimir Putin signed a decree to remove the time limit for the sale of Shell's stake in the Sakhalin 2 LNG project.

The document has been published on the official portal of legal information.

Previously, it was assumed that this stake would be evaluated and sold within four months from the date of Shell’s refusal to transfer the stake in the new operator of the project to the shareholder of the former operator - Sakhalin Energy. The government was instructed to adjust the relevant regulatory acts.

It was expected that a new shareholder of the Sakhalin-2 project instead of Shell would be determined before the end of the year.

On June 30, President Vladimir Putin signed a decree under which a Russian stock company would replace Sakhalin Energy as the operator of the Sakhalin-2 project.

On August 2, Prime Minister Mikhail Mishustin signed a decree establishing Sakhalinskaya Energiya, the new operator of Sakhalin 2. The company was registered on August 5.

Japanese companies Mitsui and Mitsubishi agreed to keep their stake in Sakhalin-2, but Shell, which has a 27.5% stake in the project, said it would not have any stake in the new company. Now Shell's stake is to be valued and sold, and the money from the sale is to be transferred to a special account. Under the decree, the further sale of any stake in the Sakhalinskaya Energiya can only be made to a Russian legal entity.

Russian independent gas producer Novatek expressed interest in the project. However, according to the Kommersant newspaper, the deadline may be postponed to the first quarter of 2023: the government has not yet completed an assessment of Shell's activities for possible damage, and Novatek is not yet ready to submit a commercial offer.