Putin signals end to overseas ownership of Russian energy

timesonline ^ | December 12, 2006 | Carl Mortishead, International Business Editor

[Flavius]

Carl Mortishead, International Business Editor # Firms to have subcontractor role # Shell faces fight over Siberian field Foreign energy companies will be welcome in future as subcontractors but not as owners in Russia’s energy industry, the Kremlin signalled yesterday as Gazprom moved closer towards wresting control of Sakhalin-2, the giant Siberian gas project, from Royal Dutch Shell.

The Russian gas giant confirmed that Shell had made a new proposal in negotiations over Gazprom’s participation in Sakhalin Energy, the company building a $20 billion (£10.2 billion) liquefied natural gas scheme in Eastern Siberia.

The project has been beset by claims and threats of prosecution from Rosprirodnadzor, the Russian environmental control agency, a campaign that is seen by Moscow energy analysts as calculated to weaken Shell’s negotiating position.

Sources within Moscow suggest that Gazprom will acquire 50 per cent plus one share of the Sakhalin Energy company, reducing Shell’s stake to 25 per cent, from 55 per cent. Mitsui and Mitsubishi, the current minority investors, would see their stakes reduced further.

Mounting pressure on Shell to concede control of Sakhalin Energy to Gazprom has coincided with nationalist sentiment. Dmitry Peskov, spokesman for President Vladimir Putin, yesterday said that the environment had changed and Russian companies no longer needed foreign help.

“Our companies have the opportunity to be owners by themselves, to attract finance and certain technologies. This changes the conditions for foreign investors. They won’t be so much owners, they will have opportunities as contractors and subcontractors,” Mr Peskov said.

“We understand that it is better to have a direct share but you have to understand these are Russian resources. No country in the world would want to give up its natural resources to foreigners.”

Existing agreements would be respected, he said, but he suggested that the contracts granting major concessions to companies, such as Shell, were a legacy of a past era. “In the 1990s, our country was in a poor economic state, we couldn’t develop energy by ourselves. We had to attract investors with extremely favourable conditions. Now the situation has changed drastically,” Mr Peskov said.

Shell confirmed yesterday that its chief executive, Jeroen van der Veer, had a meeting in Moscow on Friday with Alexei Miller, Gazprom’s chief executive, at which “Sakhalin-related issues were discussed”. The meeting, which was also attended by Viktor Khristenko, Russia’s Energy Minister, was described by a Shell spokesman as “positive”.

In Moscow, Gazprom said that Shell’s proposals were being analysed. “A decision will be taken in view of the existing problems at the Sakhalin-2 project, including ecological,” the Gazprom spokesman said.

Shell’s relationship with the Kremlin has been chilly since it signed a draft asset swap agreement with Gazprom last year, under which the Russian utility was to acquire a quarter of Sakhalin Energy in exchange for half of Zapolyarnoye, a large Western Siberian gasfield. A week after the agreement, Shell disclosed that Sakhalin’s costs had doubled to $20 billion.

PUTINISATION OF RUSSIA

Kremlin’s Attempts to Reclaim Control of Strategic Assets

Gazprom: Shell expected to cede control of Sakhalin II to Gazprom

Yukos: Kremlin tax bill clears way for Rosneft to acquire Yugansneftgaz

EADS: Russian bank VneshTorgBank takes 5 per cent of EADS

Ukraine: Row with Ukraine over Russian gas price settled when Kremlin acquires greater control of gas pipelines

Armenia: Kremlin acquires control of gas pipeline to Iran in return for agreed depressed gas price

Next in Putin's sights

Belarus & Georgia: Threatening to increase price of gas but prepared to settle in return for control of distribution pipeline

Shtokman: Russia says it will not invite foreign partners to develop world’s second biggest gas field. To be developed by Gazprom alone

TNK-BP: Gazprom or Rosneft expected to buy out BP’s Russian private sector partne

[M. Espinola]

I asked if anyone from the Putin Promoters Club would defend Putin's weapons sales to the Axis of Evil and guess who showed up rather quickly?

You, that's who

"Just relax. Assad was educated in France where he lived long years. After all where he gets those US dollars for which Russia sells her weaponry?"

Let's get the Butcher of Lebanon's background correct.

Bashar al-Assad was born on September 11th, 1965 in Damascus. There, he was educated at the French-Arab al-Hurriyet school and continued on to medical school, specializing in ophthalmology. In 1988, he enrolled in the Tishrin Military Hospital in Damascus;. In 1992 Dr. Bashar al-Assad, moved to London for his residency in ophthalmology, but two years later Basil his brother died after crashing his Mercedes-Benz, catapulting the younger Assad ahead in the line of succession. At the time, the definitive 552-page biography of his father mentioned Bashar on one page.

But upon his return, he soared through military and party ranks: from captain to three-star general in six years. Wow, when one runs the nation one can become a three-star general in no time.

"Accually if America step forward and order those weaponry of Russia' production I'd be glad. But someone has to feed russian workers employed in the weaponry factories? SO Putin acts in favor of those workers and industries."

That's just marvelous.... So, the only way the poor 'Russian workers' will be fed is Comrade Putin making sure the Axis of Evil has enough weapons to trigger WWIII?

Is that what it says in today's issue of Pravda?

[RusIvan]

Would Col Putin, opps, 'President KGB' meet me at the airport and put me up in the best facilities the Kremlin Ritz can offer? I think not, in fact if someone such as myself ever traveled to Putinland, it would be a extended Siberia vacation... at best.==

Hotel Ritz-Carlton will be opened in Moscow in March, 2007. So you may stay in your favorite hotel while in Moscow:)..
http://test.welt.ru/en/booking/hotel/da454327-2871/

C'mon, Espinola ar eyou afraid that your bias will be shattered when you see everything by your own eyes?:)

Why is it Putin's "MARKET" includes every ruthless leftover commie dictator, coupled with anti-Western Islamic tyrants making up the Axis of pure Evil?==

They just has US dollars and plenty of it. You should ask yourself WHERE those guys get US dollars. After all the business is business. Russia makes money from those guy. If you offer Russia other kind of customers then Russia with pleasure will sell to them. But now russian industry has to work and russian workers has to eat. You are not step forward to feed russian industries so they should do it themselves as far they can.

[RusIvan]

That's just marvelous.... So, the only way the poor 'Russian workers' will be fed is Comrade Putin making sure the Axis of Evil has enough weapons to trigger WWIII?==

Again it is obvious that if other customers will step forward and order russian merchandises then Russia will be ever glad for expanding the market. Russia is just the gun show where everyone with US dollar can buy the gun. You just do not buy russian gun but try to teach Russia whom to sell and whom do not. It is very strange position. You become the customer first especially the asset customer THEN Russia will listen your words.

[Kozak]

Every foreign company should destroy the infrastructure they created before leaving. All the wells, pipelines, roads etc etc etc.

[sergey1973]

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[spanalot]

Did you see that some of these Russian companies are pulling out of US stock exchanges? Maybe their afraid of us seizing assets?

[M. Espinola]

Comrade Kremlin, the link to the Hotel Ritz-Carlton opening in Moscow in 2007 did no function just like Russia.

"C'mon, Espinola ar eyou afraid that your bias will be shattered when you see everything by your own eyes?:) "

I am afraid you guys will not provide a welcoming brass band, a Red carpet and a Rolls for a rental car. In terms of being bias, ff anything it would be reinforced dramatically. I can always go to northern Canada in relation to a one way trip to northern Siberia :)

In terms of Putin's Axis of Evil weapons customers, those terrorist dictatorships get the bulk of their weapons from two hard-core communist nations (Red China & North Korea) and the third under the control of a KGB Col. America does not sell weapons to Syria or Iran, Putin does.

[M. Espinola]

"Did you see that some of these Russian companies are pulling out of US stock exchanges? Maybe their afraid of us seizing assets?"

Maybe that's what Premier Putin is planning to do with US companies foolishly still dealing in Russia.

Or...the Russians are departing from Wall Street since Moscow is such a secure place to do business (sar)

[RusIvan]

America does not sell weapons to Syria or Iran, Putin does.==

But America buys iranian oil so Iran gets US dollars. Only after then Russia comes and hunts those US dollars.
Syria is poor country so if they found few millions to buy something form Russia' gun show that it is not big deal.

the link to the Hotel Ritz-Carlton opening in Moscow in 2007 did no function just like Russia. ==

Not functioning? Strange maybe your intenet provider failed somehow because it is functioning all right from my computer. Try this way: http://195.133.69.11/en/booking/hotel/da454327-2871/ ..

I am afraid you guys will not provide a welcoming brass band, a Red carpet and a Rolls for a rental car. In terms of being bias, ff anything it would be reinforced dramatically. ==

So what? You are not president Bush after all:). But if you'd come as the regular tourist then you may find Russia with your own eyes. It is definetely better then to be zombied by western mass media:). Don't be afraid about your bias. I had my bias too until I came to United States and saw everything by my own eyes. I may say that my perception of America changed absolutely after I travelled there..

[RusIvan]

http://www.ritzcarlton.com/corporate/press_room/releases/moscow.html - Read this..

[Smokin' Joe]

Can we put the MIRV busses back on the missiles now? Please?

[M. Espinola]

That link functioned. Will there be KGB spies on every floor or every other floor?

"But America buys iranian oil so Iran gets US dollars."

The official position from Washington is Iranian crude oil or natural gas is embargoed. If energy products are relabeled as Saddam was pulling via Syria under 'oil for food', that is another story.

"Syria is poor country so if they found few millions to buy something form Russia' gun show that it is not big deal.

Putin is selling enough advanced weaponry to enable Syria and their terrorist allies in Hezballah to wage war against Israel and the Christians of Lebanon. It's would seem to fit perfectly into Putin's ongoing offensive strategy against the West in general in utilizing either Islamic or Communist proxies.

"But if you'd come as the regular tourist then you may find Russia with your own eyes. It is definetely better then to be zombied by western mass media:)."

By 'zombied by western mass media' you must mean CNN?

You mean I can watch the joys of the Putin controlled media? I'd rather go to Siberia in the middle of the winter - LOL!

"I may say that my perception of America changed absolutely after I traveled there.."

That is correct, thus you very quickly discovered that all that Radio Moscow propaganda was nothing but a lot of bunk and communist big lies.

Is Russia does Premier Putin have his own weekly TV show?

"My fellow Comrades we will bury them soon!"

"Da! Comrade Putin!"

[RusIvan]

"But if you'd come as the regular tourist then you may find Russia with your own eyes. It is definetely better then to be zombied by western mass media:)."

By 'zombied by western mass media' you must mean CNN?==

CNN, FOX whatever. I just notice that your perception of russia kind of 30 year old. You recall communists so frequantly that I hear of them lot more on FR then in russian ordinary life. Commies would be flattered if they knew that they so deeply impressed you:)..

BTW Putin' party named 'United Russia'.

Isurely beleive that you just need to travel to russia s a torist just to see everything by your own eyes. Maybe fresh impressions will clean up your mind for good ofcommies obsession and you'll forget them as people of Russia did.