By Walter Grand in Economy —

Putin ordered that the operator of the Sakhalin-2 project be replaced with a new legal entity that will take over Sakhalin Energy's rights and obligations.

Putin ordered that the operator of the Sakhalin-2 project be replaced with a new legal entity that will take over Sakhalin Energy's rights and obligations.
Photo by Gustavo Quepón / Unsplash

Sakhalin Energy's assets will be transferred to the Russian Federation with a simultaneous gratuitous transfer to the new Sakhalin-2 operator. Gazprom Sakhalin Holding and the company itself will hold stakes in the new Sakhalin-2 operator.

The change of the operator of Sakhalin-2 is due to the breach of obligations by some foreigners related to the performance of the PSA. The Russian government will be able to sell stakes in the new Sakhalin-2 operator if they are not transferred to shareholders of the current one.