Russia: Prosecution as a Weapon against Foreign-Controlled Energy Projects

The Russian Prosecutor General's office confirmed Dec. 5 that it will proceed with criminal charges against Sakhalin Energy, the Royal Dutch/Shell-controlled operator of the Sakhalin-2 project. Russian regional prosecutors are also threatening to suspend the Caspian Pipeline Consortium and its operator, Chevron Corp., accusing them of operating under an invalid license. The charges are an effort to facilitate the handover of the projects — the only ones in Russia owned by foreigners — to Russian state-controlled energy companies.