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The Kremlin’s oil grab

Posted by Matt in December 22nd, 2006

Big oil has a long history of having assets appropriated by hostile governments. Yet no one has been quite prepared for the land grab by Gazprom of a 50% stake in the Sakhalin-2 project.

This will come as a nasty blow to all overseas investors in President Putin’s Russia and emphasises the vulnerability of European energy supplies to the whims of the Kremlin.

The way in which the Russian authorities slowly tightened the noose on Shell can be seen as carefully orchestrated blackmail.

It will send shivers down the spine of BP investors who are heavily exposed to Russia through the TNKBP joint venture.

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