By: NILS PRATLEY
The words that should ring in the ears of executives at Shell are those of George Soros. Russia, said the financier earlier this year on the topic of energy supplies, is “a country that does not hesitate to use its monopoly power in devious and arbitrary ways”.
Soros was speaking in the context of letting Rosneft, the chief beneficiary of the Kremlin’s forced purchase of Yukos assets, to list in London. But devious and arbitrary are also good descriptions of events at the huge Shell-led Sakhalin-2 project. It would be naive in the extreme to believe it is pure coincidence that the project has lost its operating licence just as the state-controlled Gazprom is agitating to buy a 25% stake.
Sakhalin-2 was established in the wake of Russia defaulting on its debt. The country needed to attract foreign capital and its bargaining position was weak. Shell got what it regarded as an agreement reflecting the commercial realities of the day. Russia got terms that it now, flush with the proceeds of the high oil price, regards as humiliating.
Simply ripping up a $20bn contract with Shell and two Japanese oil firms may be a step too far, even for the Kremlin. Rather, behind closed boardroom doors, Shell may be encouraged to hurry along its asset-swapping talks with Gazprom. Do not surprised if the environmental licence then miraculously reappears.
If such a cynical manoeuvre is indeed the plot, financial markets and politicians have a decision to make. Events at Yukos could be dismissed as a purely Russian affair but the Kremlin is playing an infinitely more ambitious game in attempting to strong-arm the likes of Shell. With the west pouring billions into Russia, this row has the potential to escalate rapidly.
This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.
Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
