Thu Oct 5, 2006 3:01 AM BST
LONDON (Reuters) – A Kremlin official turned up the pressure on Royal Dutch Shell (RDSa.L: Quote, Profile, Research) over its Sakhalin oil and gas project in an interview with the Times newspaper, published on Thursday.
Russia wants Shell either to keep its original cost agreement, renegotiate the terms of its deal with Moscow or sell up and leave, the newspaper said.
Arkady Dvorkovich, head of the Kremlin’s economic research department, told the Times: “As far as Sakhalin-2 goes, you know which side started changing the terms and who asked for expenditure to be doubled. It was clear … that the Russian side would never agree to this.”
Dvorkovich told a conference in Moscow on Wednesday Russia was particularly concerned by Shell’s request last year to allow it to double costs at the Sakhalin-2 project to 10.6 billion pounds (US$20 billion).
This would reduce Russia’s profits under a product-sharing agreement (PSA).
“If it’s more beneficial to work under the PSA, (Shell) should do that rather than switch to a new legal regime. If neither of those options are acceptable, it may be more beneficial to sell their interests to a third party,” the Kremlin official told the Times.
Russia has stepped up pressure on Sakhalin-2 and the neighbouring Sakhalin-1 project, led by Exxon Mobil (XOM.N: Quote, Profile, Research). Many analysts have said they consider the rising pressure as part of a Kremlin campaign to regain control over the projects by forcing operators to sell out to state controlled firms.
Alexander Medveded, deputy chairman of Gazprom, reiterated the firm was still in talks with Shell over Sakhalin-2.
“We are looking at the original agreement of a 25 percent plus one share stake,” he told the Times, again ruling out the possibility of taking a controlling stake.
© Reuters 2006. All Rights Reserved.
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: 
MORE DETAILS:
A head-cut image of Alfred Donovan (now deceased) appears courtesy of The Wall Street Journal.
