Thu Nov 23, 2006 7:35am ET
By Christian Lowe
HELSINKI, Nov 23 (Reuters) – The head of Royal Dutch Shell (RDSa.L: Quote, Profile, Research) in Russia on Thursday demanded an end to months of sniping and threats by Kremlin-backed officials. “We would like to hear clear signals that international oil companies continue to be welcome in Russia,” Chris Finlayson told a business conference in Helsinki, where Russian President Vladimir Putin and European Union leaders will meet on Friday.
Russia’s Natural Resources Ministry and the state agencies for environmental and technical compliance, which all have the power to delay or derail projects, have aimed their toughest rhetoric at the Sakhalin-2 project off Russia’s Pacific coast, which Shell leads.
Projects run by other firms such as Exxon Mobil (XOM.N: Quote, Profile, Research) and BP Plc (BP.L: Quote, Profile, Research) have also been threatened, but Shell’s case grew into a political row that drew complaints and demands for explanation from Brussels, London and The Hague.
Many analysts see the campaign against Shell as part of a wider Kremlin drive to increase state control over the lucrative energy sector.
Shell stepped into the firing line last year when it doubled its cost estimate for the Sakhalin-2 oil and gas scheme to $22 billion, infuriating Russia, which will now have to wait much longer to see returns from the project.
“Recently there have been a lot of discussions about what Russia gets from Shell’s Sakhalin project and whether the deal is fair for Russia,” Finlayson said.
“We believe that, despite the increase in costs, the project is still highly beneficial to Russia.”
The cost increase triggered protracted negotiations with the government, which has to approve the change under the terms of the production sharing agreement governing Sakhalin-2.
It also threw a spanner in the works of an asset swap deal that would have brought Russian gas monopoly Gazprom (GAZP.MM: Quote, Profile, Research) into Sakhalin-2 as a 25 percent shareholder.
With the value of the project lessened, Gazprom may now demand a greater stake, taking some equity from Shell’s partners Mitsui (8031.T: Quote, NEWS, Research) and Mitsubishi (8058.T: Quote, NEWS, Research) as well as 25 percent from Shell’s holding of 55 percent.
“We very much look forward to welcoming Gazprom to the project as a leading shareholder,” Finlayson said.
Asked by Reuters to elaborate, he said: “There’s been no change from the position we’ve stated elsewhere.”
© Reuters 2006. All Rights Reserved.
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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.
