- Shell's involvement in the Sakhalin 2 project is linked to individuals like John Donovan and Lucy Kellaway through archival material from 2007.
- Shell and Mitsubishi Motors are partners in the Sakhalin Energy project, which is located in Russia.
Russia seeks €1.5 billion from Shell over Sakhalin LNG payments
What happened
Russia claims €1.5 billion from Shell concerning gas payments for the Sakhalin LNG project. Shell had previously stated that the old Sakhalin Energy company failed to perform, leading Shell to characterize the LNG purchase contract as "stood terminated". Shell stopped receiving cargoes after Russia transferred Sakhalin II to a new domestic operator in 2022.
Why it matters
The dispute relates to long-term deliveries that were originally planned through 2028. Shell's characterization of the contract termination is attributed to Shell, not a judicial finding. The lack of a publicly identified damages award means the financial outcome of the lost deliveries is not publicly established.
Shell and Mitsubishi Motors are partners in the Sakhalin Energy project, which is located in Russia.
Who's involved
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Shell Energy EuropeSpeculative
Shell Energy Europe could face a direct financial or legal challenge from Russia over disputed pipeline-gas payments.
- ShellSpeculative
Shell could face corporate exposure due to legal disputes and terminated LNG contracts in Sakhalin.
How this reaches others
Each traced step by step, with the reporting behind itKeep exploring
Part of
Shell and Mitsubishi Motors are partners in the Sakhalin Energy project, which is located in Russia.Also in this story
- AeA identified HSESAP non-compliances in Shell's Sakhalin project, leading to discussions with the Ministry of Natural Resources.
- Corporate liability stemming from leaked technical emails involving Sakhalin Energy and Shell Exploration & Production.
The entities involved
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Shell
British multinational oil and gas company
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Sakhalin
large Russian island in the North Pacific Ocean
Related events
- Shell benefits from Europe's energy supply gap while geopolitical tensions near Hormuz affect global energy flows.
- Shell is supplying goods for the Sakhalin II project, which is currently under legal review involving Corner House and reported by Interfax.
- Aditya Birla Group acquired Shell's renewable energy platform amid escalating Middle East tensions and a reinstated Iran naval blockade in the Strait of Hormuz.
- Shell and the Far East are discussing the Sakhalin-2 project and hydrocarbon resources.
- Shell signed a new long-term LNG supply agreement to provide energy services across European markets.