Shell sought Kremlin support for Sakhalin II expansion in 2014
What happened
In April 2014, Royal Dutch Shell chief executive Ben van Beurden traveled to Vladimir Putin’s residence outside Moscow to seek Kremlin support for expanding Sakhalin II and strengthening Shell’s long-term position in Russia. This meeting occurred while Western governments were imposing sanctions and diplomatic relations were deteriorating. On the same afternoon, Putin authorized the first shipment of Arctic oil from Gazprom’s Prirazlomnaya platform.
Why it matters
The meeting illustrates Shell’s attempt to secure political backing for its energy expansion plans despite the imposition of Western sanctions. The authorization of Arctic oil shipments by Putin on the same day highlights the state's continued involvement in the Russian energy sector.
Who's involved
- ShellBritish multinational oil and gas company seeking expansion support
- KremlinRussian government authority that was approached for support
- Ben van BeurdenChief executive of Shell who traveled to Moscow to seek support
- GazpromRussian oil and gas company whose platform oil was authorized for shipment
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.
- DieselSpeculative
Diesel might see changes in costs due to the confirmation of state oil sector operations.
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The entities involved
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Kremlin
fortified complex in Moscow, Russia
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Ben van Beurden
Dutch chief executive
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