Russian dictator Vladimir Putin has signed a decree allowing foreign investors, including leading American oil company Exxon, to return stakes in the Sakhalin-1 oil and gas project.
Points of attention
- Exxon, previously owning a 30% stake, is the only non-Russian investor to have given up its share in this profitable project.
- The US administration is considering lifting certain sanctions if progress is made in negotiations related to the Sakhalin-1 project, which is not directly affected by existing US sanctions on the Russian energy sector.
What is known about Putin's new decision?
Journalists point out that the Russian dictator signed the document on the very day of his meeting with American leader Donald Trump, August 15.
It was then that the parties considered issues of investment and business cooperation, not just the end of the Russian Federation's war against Ukraine.
What is important to understand is that this document is a continuation of the decree signed by Putin in October 2022, which provided for the confiscation of the Sakhalin-1 project.
According to open data, Exxon previously owned a 30% stake in the operator in this profitable project and is the only non-Russian investor to have given up its stake.
The US president and his administration have already discussed which sanctions they could quickly lift if progress is made in the negotiations.
As experts note, Sakhalin-1 is not subject to direct US sanctions on the Russian energy sector.
The decree stipulates that foreign shareholders must take steps to support the lifting of Western sanctions if they want their shares back.
In addition, it is indicated that they must conclude contracts for the supply of the necessary foreign equipment for the project and transfer funds to the accounts of the Sakhalin-1 project.
