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REGNUM: We are not going to yield to foreign investors on Sakhalin

Far-East Plenipotentiary Representative: We are not going to yield to foreign investors on Sakhalin

Russia is not going to yield to foreign investors working on the Sakhalin Island. Plenipotentiary presidential representative in the Far-East federal district Kamil Iskhakov is quoted by his press office as stating on October 17, stressing: “We are not going to make any concessions to foreign companies, especially when the matter concerns regional ecology,” REGNUM correspondent reports.

The presidential representative announced intent to further strengthen requirements to foreign companies that develop projects in Sakhalin. “We are inclined to protect our region and not to let the situation deteriorate,” he said.

As REGNUM informed earlier, Rosprirodnadzor (Federal Environment Protection Agency) revealed several violations of environmental legislation at the realization of the Sakhalin-2 Project. After that, the Ministry of Natural Resources of the Russian Federation made decision to revoke the ecological license to the project’s second stage, issued in 2003. The decision was base on the company’s failing to meet about half of expert.

The Sakhalin-2 Project is realized according to production-sharing agreement (PSA). It envisages development of Piltun-Astokhsk and Lunsk gas deposits whose minable reserves amount to 150mln tons of oil and 500bn cubic meters of gas. The Sakhalin Energy Company is the project’s operator; its stockholders are Royal Dutch/Shell (55%), Mitsui (25%), and Mitsubishi (20%).

At the second stage of the project, 800-km long oil and natural gas pipelines from the north to the south of Sakhalin are being constructed to transport the natural gas to an LNG plant for liquefying and to an oil terminal.

Permanent news address: www.regnum.ru/english/723573.html

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