Sakhalin: Russia Threatens Shell with “Unlimited Fines”

Shell could be forced to renegotiate the terms of its involvement in the Sakhalin 2 project this week, when the Russian government publishes a damning report on the controversial $20bn (£10.2bn) oil and gas venture.
The Anglo-Dutch oil giant also faces hundreds of millions of dollars in fines. A spokesman for Sakhalin Energy, the Shell-led joint venture running the project in eastern Russia, said there was no limit on how much it could be fined.
The Ministry of Natural Resources is expected to publish the long-awaited 600-page dossier, prepared by environment watchdog Rosprirodnadzor (RPN), on Wednesday. It is expected to list alleged violations of Russian environmental regulations by Shell and its project partners.
The Russian government wants to renegotiate the terms of the deal, which Shell struck over a decade ago when oil prices were less than $20 and Russia was in chaos. It also wants Shell to sell state-owned gas giant Gazprom a stake in the project for a knock-down price. The ministry is expected to use the environmental report to press Shell to agree new terms.
Should be an interesting week..