Kommersant: Putin agreed to pay Shell 94.8 billion rubles for a stake in Sakhalin-2

Russian President Vladimir Putin agreed with the proposal of the head of Novatek, Leonid Mikhelson, to transfer the funds that Shell could receive from the sale of 27.5% in the project “Sakhalin-2“, to the foreign account of the company. About it writes Kommersant, citing sources familiar with the appeal of the head of Novatek.

The interlocutors note that Michelson’s proposal is connected with the desire to “minimize the risks for operating activities and export deliveries of hydrocarbons from the project.” According to sources, Putin put the visa “I agree” on the letter. Novatek did not respond to the newspaper’s request, while Gazprom declined to comment.

Former government appreciated Shell’s share in Sakhalin-2 in 94.8 billion rubles. with the condition that the amount of damage that the company allegedly caused to the project should be deducted from this amount.

The publication claims that in order to eliminate the “shortcomings” identified as a result of the audit of the project, dividends from Sakhalin-2 for 2021, which were not fully paid to the company, can be used. In 2022, Shell reported that it received $165 million in dividends. Later, the company estimated the unpaid dividends at $1 billion. As a result, Shell will be able to receive not only 94.8 billion rubles. for its share, but also a part of undistributed dividends for 2021, minus the amount that will be used to eliminate “shortcomings”, Kommersant writes.

In June 2022, Putin signed a decree according to which all rights and obligations of the former operator of the Sakhalin-2 project, Sakhalin Energy Investment Company Ltd. were transferred to a specially created Sakhalin Energy LLC. In addition, the document suggests that Shell can only receive money to a Type C account in Russia.

After that, the company announced its withdrawal from Sakhalin-2. In early March, Kommersant, citing sources informedWhat “Novatekis ready to buy out Shell’s share (27.5%) in the Sakhalin-2 project. The day before, on April 3, Novatek announced that the company had applied for participation in the selection for the purchase of a stake in the Sakhalin-2 project.

The owner of the controlling stake in the Russian company was “Gazprom“. Earlier in the PSA project, Gazprom owned 50% plus 1 share, Shell – 27.5% minus 1 share, Japanese Mitsui and Mitsubishi – 12.5 and 10% respectively. Despite the withdrawal from the Shell project, Japanese companies preferred to keep their stakes.