Russia gets its hands on Royal Dutch Shell's Sakhalin-2 field

Shell losing in Russian battle for Sakhalin-2

Audio: Moscow wants back ownership of Sakhalin project, says Russell Hotten

Your view: Is it time Western business left Russia in the cold?

Royal Dutch Shell has bowed to pressure from the Russian government to allow state-owned energy company Gazprom to take over its Sakhalin-2 oil and gas field.

The Anglo-Dutch oil company said yesterday that it has made several proposals to Moscow and Gazprom. These are understood to involve Shell and its partners giving up control of the $20bn (£10.2bn) project.

The move by the Kremlin will be seen as a sign that Russia will no longer tolerate foreign investors controlling strategic assets.

Shell owns 55pc of Sakhalin-2, with Mitsui of Japan owning 25pc and Mitsubishi 20pc. It is thought that Shell proposed giving up about 30pc-35pc, and the other two companies handing over about 10pc each.

Gazprom was originally negotiating to take a 25pc stake in Sakhalin-2. Talks collapsed when Shell said the development, on an island in eastern Russia, would require substantial investment.

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Well done! Another middle finger into the face of global imperialism and degraded capitalism? /sarcasm