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The Guardian: Russia piles pressure on Shell at Sakhalin 2

Friday 8 December 2006

Russian authorities increased pressure on Shell yesterday by suspending the licences of a subcontractor at its huge Sakhalin 2 natural gas project in eastern Siberia, because of alleged violations of water regulations while laying pipes.

Starstroi has two months to correct the problems or 12 licences will be annulled, the natural resources ministry said. Shell has been under pressure to offer state gas company, Gazprom, better terms and enraged the Kremlin last year when it said the project costs would double to $22bn – delaying the time when Russia would receive a share of the profits.

Associated Press

http://business.guardian.co.uk/story/0,,1967192,00.html

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