$20bn gas project seized by Russia;
Shell is being forced by the Russian government to hand over its controlling stake in the world’s biggest liquefied gas project, provoking fresh fears about the Kremlin’s willingness to use the country’s growing strength in natural resources as a political weapon.
After months of relentless pressure from Moscow, the Anglo-Dutch company has to cut its stake in the $20bn Sakhalin-2 scheme in the far east of Russia in favour of the state-owned energy group Gazprom.
The Russian authorities are also threatening BP over alleged environmental violations on a Siberian field in what is seen as a wider attempt to seize back assets handed over to foreign companies when energy prices were low.
Alan Blaknekov is the Russia Energy Minister.
Alan Blakeney
Maurice Strong
Vladimir Putin
anyone see a pattern?
Hmmm. Used the word in…sur…ance. Will try again.
See this. See Shell laugh all the way to the bank.
This the same guy?
“It is my privilege to welcome you to the fourth session of the 19th legislature of Saskatchewan.”
“My government will continue its fight to protect the Crow rate for prairie producers and to secure improvements in the grain transportation system.”
“HON. MR. BLAKENEY: — Mr. Speaker, I move this House do now adjourn.”
Don’t look now but Hugo Chavez in Venezuela is looking at taking a much bigger share of oil revenues there too. If it doesn’t take all, Alberta’s new Premier is talking of doing the same thing when it comes to the tar sands! Where does it all end?
If you’re going to do business in primitive places you have to expect such primitive reactions. Another good reason to not do business in Russia, China, or most places in South America. Because they will change the rules whenever it’s expedient for them to do so.
Well
If what different Bob says is true this is yet another “Great non-moment in Socialism”.
Unless, of course, Alberta’s CONSERVATIVE government is really a Socialist one.
I’m sure David Suzuki, greenpeace, siera club et al are all tickled pink by these developments.
They’re all as the saying goes ‘watermelons’ green on the outside, red on the inside.
It can only be a matter of time before somebody proposes a Russia Study Group, perhaps under the auspices of the UN (insert your favorite rude laughing noise here), or (God help us) Jimmy Carter.
This is not the first time Russia has allowed foreign investment to build up their economy and then changed the rules and taken everything.
But, listen to the cries if our govt forbade investment in Russia on the grounds it is a dangerous place to do business. At least, so far, non of the major players have not been poisoned.
I see Duceppe is showing his true colors again, that it is ok for cdns to fight, but not frenchmen. Didn’t France cave to the Germans long long ago. And isn’t dion French. Duceppe and Dion. These two are not sending a good message to the world about doing business with the french or trusting them. Begone, the both of them. Both these men want combat in Afgan stopped, just rebuild. How do you rebuild when everything you try to rebuild gets blown up.
There may have been a reason in the past why Presidents/Leaders were older men when they came to power or at least old men when they left.
They were expected to retire;[that translates to Get Out Of The Picture]upon completion of term.
It seems nowadays we have the Carters,Clintons et al running around with time on their hands though lacking power;creating all sorts of sh*t storms in there quest to still maintain some sort of relevancy.
I say lock ’em up where they can’t harm any but themselves with perhaps a few virgins thrown in so they’re to tired to cause any mischief !!!Cheers
Putin nationalizing a royal dutch family asset? Queen Beatrix will be sending out some massive shockwaves into the Bilderberg clique who have been funding Russia’s recent corporate statism which has allowed Euro banks into the development game in Mama Ruski…this reverting to nationaliat socialism with nationalizing projects funded by Europe’s old money will certainly impact Putin’s status and in all likelihood see him replaced by someone the Bilderbergs/EEC/world banl/IMF can deal with.
Imagine! Some commie puppet you thought you had bought turning insubordinate and stealing from his EU masters? The nerve!!
I would be more glib on this if it weren’t so threatening. Sakhalin is home to one of the most important reserves of hydrocarbon in the world. The natural gas is deposited in reservoirs which measure hundreds of metres in thickness and has the potential to provide fuel for many years to come. As it has been implied, this isn’t just another country taking over a massive project because of greed; this is a strategic political move by a totalitarian government bent on regaining past glories.
I’m only surprised the Russian authorities didn’t wait a year or two until Sakhalin-2 was on-line. Now, they’ll have to finance the rest of the project themselves.
Then again, shrewd fiscal management isn’t exactly what the Kremlin is known for.
it was quipped a couple decades ago how moscow kept negotiating lucrative grain deals with thorough knowledge of the commodities market “those communists make good capitalists”
theyre still at it.
Russian thugs pushing around western business and stealing the fruits of outsider labour and investment isn’t anything new. Fracmaster got bent over the Urals in the 90’s (and promised they wouldn’t be going back). The energy industry has much too short of a memory.
The Russian government has big plans for being the main sole source gas supplier to Europe. Anyone remember the Shanghai meeting with Ahmadinejad on June 15th where they shook hands on monopolizing gas trade in Europe and Asia (read as China)?
Why would Russia want a European oil & gas company in control of their supply infrastructure to Europe? It might get in the way of “business”, right Vito? Right Maurice?
Putin is a snake. He is gradually re-Stalinizing the country. 13 dead journalists so far. The tv stations have all reverted to state control. The outright theft of Yukos was a disgrace. As long as he’s awash in oil and gas money, he’s fine. You’d think the Russian sheeple would be taking the reversal of their liberties to the streets.
The Canadian oil sands are becoming more valuable as a known reserve in a safe democratic neighbor.
Knowing that we need an urgent assesment of this growing energy menace – the Arabs and the Russians and Chavez – and a plan, let’s see what the Dems, now in control of congess, do to screw things up more. They’ll slap on windfall profit taxes to discourage the major oil companies from further exploration and keep drilling off limits in the GOM and Alaska.
Who does Putin think he is? Trudeau?
In the long run such attempts backfire, as businesses either stay away or ask for higher prices as a risk premium.
California suffered consequences when it reneged on energy contracts that were no longer in its favour. The state thought it could play the bully, only to suffer energy shortages later on.
This comes as no surprise as the Commies have a history of doing this to foreign companies. Just look at all the Western Oilfield companies raped by the Ruskies the last time around.
What makes me laugh is the TV commercial where some brilliant investment guy is watching tires being tested in Finland. He looks over the horizon to Mother Russia and marvels at a country with hundreds of millioms of customers just begging to buy something – anything…
Yeah right! Just another Western schmuck looking to get taken to the cleaners by the Russian Mafia!
What I was referring to in my 7:52 post this morning is that the new premier of Alberta is not happy with the fact that the province’s royalty take is only 1% until a company has been able to recoup their capital outlay for the development of thier tar sands project. The capital outlays are huge so it will be many years before Alberta gets to fully participate in the revenue generated by tar sands oil.
Penny: “He is gradually re-Stalinizing the country”
I don’t read Putin as an idealogue. I think he’s got more of a goldfinger. He’s received some of the best training in the art of deceit with the KGB – perfect for running the Crimea Crime Corp Party (CCCP). It’s all about money and control…a nationalized crime syndicate. The mob doesn’t have to buy the law makers and enforcers…they are the law makers and enforcers. Welcome to the eastern European version of Orwell’s 1984.
rabbit, rob huck and martin – you are dead on. This will come back to bite Putin as foreign investment falls to zero. He needs the capital and foreign expertise to keep his oil funded party rolling along. The Euroweenies need to make alternative plans too unless they want to be his energy slaves.
There is another piece of ugliness in the Russia story though, and, that’s the high measure of misplaced ultra-nationalism that’s taken hold, replacing their last failed “ism” with a newer just as toxic one.
What you will never see examined by the mindless lefties that can’t get their lazy asses out of protected academia on our tax dollars is that communism deploys itself easily into fascism. It proves that once you surrender to a stupidity like communism, adapt to it, eventually IQ points start diminishing.
Penny,
I agree on Russia’s rise in nationalism (it’s essential for thuggery). I believe they will try to annex the Ukraine once again. The russians I know think that the prospect of the Ukraine remaining democratically independent is a big joke to them. Like a moth to the flame…
Maybe Putin’s nickname should be “Gasfinger”. Any nation willing to pull it? Germany?
As I have comment many times about Putin….He is out to make himself the New Stalin…he is Not to Be Trusted and In Fact the World would be Far Better Off if he stopped breathing for good….sooner the better!
it belongs to russia. what’s your stake in it?
What the hell has Shell oil done for you? Why do you stick up for them? Do you shell oil will make you rich or what?
You get one response, only one, as the drive-by idiot of the evening. Shell is an apolitical entity. Gazprom isn’t. Try to grasp that simple capitalist gift to humanity. Shell isn’t trying to brow beat their neighbors into submission, violate contract laws and with no transparency to shareholders fund the Swiss bank accounts of its officers.
Russian oil and natural gas belongs to Putin’s select state cronies, not Russians, you idiot, just as Microsoft shouldn’t belong to Bush.
ok4ua:”Why do you stick up for them?”
Free enterprise is WORTH sticking up for. It powers our way of life through new development and infrastructure construction, skilled employment growth, value added taxation/community program support, higher education standards, access to services, etc.
When joint ventures involving Canadian companies (i.e. Canadian Fracmaster, Black Sea Energy Ltd) end up being cancelled with the venture properties expropriated without compensation by mother Russia, that takes money directly out of OUR economy – the Canadian investment dollars for those ventures won’t be coming back. Having those dollars stolen from our economy harms Canada and our way of life right down to the homeless citizen looking for room at the shelter.
The latest Russian mugging of Shell is going to hurt people too. Shell’s loss will affect their investment in Canada. How isn’t that bad for our country and its’ ordinary citizens?
Kremlin Kyoto carbon credits, anyone?
Shell oil doesn’t care about people just profits. Don’t kid yourself. We had a paper company leave the province and the media blames the gov’t. The pulp mill didn’t care if 600 were out of work but it will reopen. You people are dreamers that’s for sure and young. I’m a great BSer myself but tell me more, convince me.
Anyone who trusts the current Iranian government more than the western interests who have been instrumental in rebuilding the Russian economy, would have to be a bloody idiot. The idiot’s shoe fits Putin perfectly.
Joe: “Anyone who trusts the current Iranian government…”
I’m inclined towards “birds of a feather…”
Well, this is a disappointing thread. Obviously nobody looks at links.
For the lazy: Shell is protected from losses. The World Bank has an in… sur… ance program that protects companies investing in shaky economies.
So we can all get our snot in a knot about Shell getting ripped off, or more appropriately, Russia acting like, um, Russia, or we can ask WHO IS FUNDING THE WORLD BANK IN… SUR… ANCE? (my guess is us via the UN, but I could be wrong)
Seriously, folks, pay attention here.
So what is your point Candace???
All of what you say may be true, but does it make Putin/Russia a better world citizen/country?
Just because Putin can get away with it, doesn’t justify his actions by any stretch of the imagination.
And your point about the World Bank and the UN – it’s all old news. Nothing new there.
You guys are nuttier than fruit cakes. I hear people like you on John Gormley. They should put you on TV so the whole country can get a good laugh. And 37% of Canada voted for you. That’s truly scary.
That’s your muddled opinion, OK4UA.
At least most of the people posting here don’t share your communist, anti-business, myopic view of the world. And thank God for that.