Sakhalin-2 Development on Turmoil

The Russia's Sakhalin-2 oil and gas project was plunged into further turmoil yesterday after the Kremlin said talks over Gazprom taking a stake in the project had stalled.

Royal Dutch Shell, the leader of the project, with a 55 per cent shareholding, faced the very real prospect of being stripped of a key environmental licence for its development of Sakhalin-2, throwing the future of the entire project into uncertainty.