Royal Dutch Shell pulled out of a project to build a Russian liquefied natural g...
LONDON/MOSCOW - Royal Dutch Shell pulled out of a project to build a Russian liquefied natural gas plant partly because Gazprom suddenly added another partner with links to an ally of President Vladimir Putin, according to five sources.
The sudden change in the line-up of partners was one of the key factors contributing to Shell’s Wednesday announcement that it was pulling out of the project, according to three sources close to Shell and two other sources familiar with the project. With RusGazDobycha’s arrival also came changes to the configuration of the project itself, which Shell did not feel comfortable with, all of the sources said.
The sudden shift in the project underlines the unpredictability of doing business in Russia — even for a firm like Shell with a long pedigree of successful cooperation. It also shows how Rotenberg’s business empire, focused mainly on construction and engineering, is expanding into the energy sector. The Russian government has given no indication as to whether it would extend Shell’s Sakhalin contract.One of the problems for Shell was that Rotenberg, a long-standing friend of Putin and his former judo training partner, was under sanctions and that created sanctions risks for Shell too, according to one of the sources close to Shell and the second source familiar with the project.
RusGazDobycha is 100 percent-owned by a firm called National Gas Group , according to the Spark database, which collates official data from the tax agency and the state statistics agency.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Shell exits Gazprom-led LNG project in RussiaRoyal Dutch Shell has decided to exit a Baltic liquefied natural gas (LNG) proje...
Read more »
Shell sells stake in Gulf of Mexico field for $965 millionRoyal Dutch Shell has agreed to sell its stake in the Caesar Tonga field in the ...
Read more »
Shell faces lawsuit from climate change activists over fossil fuelsEnvironmentalist and human rights groups said on Friday they had started a lawsu...
Read more »
Oil giant Shell has a new plan for cutting carbon footprint: planting millions of treesShell will spend $300 million over the next three years to support reforestation and offset greenhouse gas emissions from its products.
Read more »
Environmental groups to sue Shell over fossil fuel useEnvironmentalist and human rights groups said on Friday they had started a lawsuit against Royal Dutch Shell in the Netherlands to force the energy firm to cut its reliance on fossil fuels.
Read more »
Shell pushes green credentials with 'carbon neutral' driving schemeDutch drivers seeking to offset their impact on the environment will soon be abl...
Read more »
Activist group withdraws resolution challenging Shell climate policyAn activist group said it has withdrawn a shareholder resolution calling on Roya...
Read more »
Shell activist investor withdraws resolution targeting climate policy, citing oil major's progressThe resolution, which was opposed by Shell's board, called on the company to set and publish targets aligned with the Paris Climate Agreement.
Read more »
Tokyo Gas, Shell sign LNG deal linked to coal pricing in rare moveJapan's Tokyo Gas said on Friday it has signed a deal with Royal Dutch Shel...
Read more »
If you’re searching for higher returns, oil has doubled the gain of stocksConsider shares of Royal Dutch Shell, Exxon Mobil, Chevron, Halliburton and Baker Hughes, among others.
Read more »