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Shell Walks Away From Major Russian LNG Project With Nothing

  • Company confirms it won’t take a stake in new project operator
  • Putin is preventing some companies from selling Russian assets
Shell Plc gas station in Kemerovo, Russia.

Shell Plc gas station in Kemerovo, Russia.

Photographer: Andrey Rudakov/Bloomberg

Shell Plc will walk away from Russia’s Sakhalin-2 liquefied natural gas project with nothing after President Vladimir Putin transferred the major facility to a new operating company. 

The London-based firm’s decision is the latest indication that Putin won’t allow international energy companies to realize big financial gains as they exit Russia over the invasion of Ukraine. The president has also issued a decree that blocks Exxon Mobil Corp. from selling its interest in the Sakhalin-1 oil project until the end of the year.