Russia’s Gazprom to Get 50% of Replacement for Sakhalin-2 LNG Project

The decree said that Gazprom will get just over a 50% stake and the remaining 49.99% will be held by the new company itself until after existing Sakhalin-2 shareholders apply for a stake which they should do within a month, or by early September.

Reuters

Gazprom will receive 50% of a new Russian entity replacing the Sakhalin Energy LNG project, a government decree showed, as Moscow re-writes rules for foreign firms operating in the country amid sanctions.

Western countries and allies, including Japan, imposed tough sanctions on Russia after it sent troops into Ukraine in late February. Moscow retaliated by putting obstacles on Western businesses and investors leaving Russia, including in some rare cases by seizing assets.

According to the decree signed on Aug. 2 and published late on Aug. 3, the new entity will be registered in the city of Yuzhno-Sakhalinsk on the Russian Pacific island of Sakhalin. The Sakhalin-2 LNG plant is located 60 km (37 miles) south of Yuzhno-Sakhalinsk.

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