Posted on 10/28/2006 6:44:51 AM PDT by thackney
MOSCOW Russian prosecutors said Friday they may launch a criminal case over alleged environmental violations at a giant Shell-led energy project as officials crank up the pressure at the troubled multibillion-dollar development.
"The Prosecutor General's Office plans to inspect materials provided by the Natural Resource Ministry on ecological violations during the Sakhalin-2 project," prosecution spokesman Konstantin Nikonov told The Associated Press. "If there are sufficient grounds after this inspection, a criminal case will be opened."
After a visit to the Pacific island of Sakhalin in Russia's Far East to inspect the liquefied natural gas development, Natural Resources Minister Yuri Trutnev said Wednesday that the project violated five articles of the criminal code.
He said the documents would be sent to prosecutors in two weeks and they would determine whether Sakhalin Energy, the consortium operating the project, or its contractors were to blame. "I believe that the company is working disgracefully on the island," Trutnev said at a news conference.
Trutnev conceded that the company had begun to address the problems, and though there were already grounds to halt the project, he said this was not his aim.
Trutnev said that some of the violations were punishable by prison terms of up to seven years.
The Sakhalin-2 project, led by Royal Dutch Shell PLC, has been accused of inflicting large-scale damage on Sakhalin's ecosystem, including illegal deforestation, silting salmon-spawning rivers and soil erosion.
The troubles at Sakhalin-2 have been closely watched by Western governments over fears that the environmental checks, which began in August, are a smokescreen for reshaping Shell's original deal in the Kremlin's favor.
Regulators froze a key environmental permit at Sakhalin-2 last month. Work would have to be suspended at massive expense if a decision to revoke the permit is taken as a result of the probe.
Several Western oil companies that control energy projects in Russia after signing similar deals in the 1990s have come under heightened environmental scrutiny in recent months, which analysts say reflects a Kremlin drive to increase the state role in the strategic oil and gas sector.
I'm thinking the change in energy prices from when this project was agreed upon and today is causing the Russians to re-think their deals.
Simply sounds like the Russians are trying to get out of a contract. They now feel they can develop and distribute energy on their own and don't want foreign companies involved.
Yet they demand that they should be able to invest and operate abroad...
I do not see that. My company is working on another large oil field development in Russia that is just getting started. They need the foreign dollars for investment to continue to build their infrastructure. I believe they are just wanting a better deal now that oil prices are so much higher than the late '90's and the project is so far along Shell cannot walk away from it.
The rule of law is a requirement for the capitalist system to work. Putin appears to to have other plans.
And they've been making such a killing on oil these days do they really need or want foreign investors?
Yes they do, foreign investors bring in billions of dollars.
Looks like the Russians are learning the "Lockyer Shakedown Technique".
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.