Last week Russia's Ministry of Natural Resources suspended environmental permits allowing Shell and its partners - Mitsui and Mitsubishi of Japan - to operate the project, which is 80 per cent complete, and which has already secured contracts for a large proportion of the gas it is expected to produce. Sakhalin-2 has reserves totalling 4.5 billion barrels.
Downing Street, along with the Foreign Office and the Department of Trade and Industry, have made it clear they are not satisfied with the Russian government's explanation for the suspension.
Sunday, September 24, 2006
Tony Blair is lobbying Vladimir Putin to leave British-Dutch Shell Oil alone, in what is turning into an ugly business dispute over Sakhalin island wells: