By John Donovan
The US and the EU have stepped up sanction measures on Russia moving from targeted to sector sanctions.
Unfortunately for Royal Dutch Shell its current business and future prospects depend on maintaining good relations with Putin.
Hence the bootlicking by Shell CEO Ben van Beurden when he met with Putin following the Russian invasion and annexation of Crimea.
The Sakhalin II project in which Shell used to be the majority stakeholder still remains an important asset to the oil and gas giant. Sanctions may yet impact on Sakhalin II.
Extracts from a Bloomberg News article by Chou Hui Hong, Anna Shiryaevskaya and Tsuyoshi Inajima published 6 August 2014
Japan will freeze assets of individuals or groups involved in increasing instability in Ukraine and in the annexation of Crimea, Chief Cabinet Secretary Yoshihide Suga said July 28. Russia’s foreign ministry said July 29 that Japan’s new sanctions are “unfriendly, shortsighted” and will hurt bilateral relations.
Russia’s Sakhalin facility near Japan’s northern island of Hokkaido provides almost 9.5 percent of Japan’s gas, according to Royal Dutch Shell Plc, which owns a quarter of the project.
Russian President Putin’s continued support for separatists in eastern Ukraine has prompted the U.S. and European Union to impose restrictions on the operations of some banks and energy companies in an effort to isolate the Russian economy.
SCREENSHOTS FROM A VIDEO PUBLISHED BY RT.com on 18 April 2014
Russia’s annexation of Crimea took place in March 2014. Shell’s collaboration is being seen as a hugely important event to be fully exploited for propaganda purposes by Putin.