Sakhalin-2 energy project could face shutdown: minister

Russian Natural Resources Minister Yury Trutnyev said on Friday the massive Sakhalin-2 energy project in the Far East could be stopped if it did not comply with Russian environmental laws.

"If Russian laws are going to be trampled on and if the environment is going to be damaged, then we will take measures to stop the project," Trutnyev said.

On Sept. 18, the Natural Resources Ministry decided to revoke the environmental permit for Sakhalin-2, a massive energy project in the Far East led by Royal Dutch Shell, citing violations of Russia's environmental laws.

The 20-billion-dollar Sakhalin-2 project involves the development of the Piltun-Astokhsky and Lunskoye fields off Russia's Pacific coast. Sakhalin Energy, the consortium formed to develop the fields, is 55 percent owned by Shell. Japan's Mitsui and Mitsubishi hold a combined stake of 45 percent.

"We've entered into constructive dialogue (with Sakhalin-2's operator)," Trutnyev said. "The company agrees it is breaching environmental legislation," he added

The minister said a recent letter addressed to him by Ian Craig, managing director of Sakhalin Energy, "practically acknowledged the shortcomings and damage inflicted on the environment" and the company promised to submit plans to remedy the damage.

Source: Xinhua