Putin signs decree allowing US Exxon to return to Sakhalin-1 project

President of Russia Vladimir Putin has signed a decree that could pave the way for the return of foreign investors, including the American company Exxon Mobil, to the Sakhalin-1 oil and gas project. About writes Reuters.

The document was a continuation of the decree of October 2022, by which the Kremlin effectively nationalized Sakhalin-1.

Then Exxon, which owned 30% and was the project operator, left the project, writing off $4.6 billion. The company became the only foreign investor to completely withdrew from the project.

Putin's new decree stipulates that foreign shareholders who want to restore their stake in Sakhalin-1 must contribute to the lifting of Western sanctions against Russia, as well as sign contracts for the supply of necessary foreign equipment and transfer money to the project's accounts.

Earlier, the Russian government allowed India's ONGC Videsh and Japan's SODECO to retain their stakes in Sakhalin-1. Rosneft was appointed as the project operator through its subsidiary Sakhalinmorneftegaz-Shelf.

The way for Western companies to return to the Russian energy sector remains uncertain, as it requires a large-scale easing or lifting of US and EU sanctions.

• On March 5, it was reported that since the beginning of the full-scale invasion, more than 1,300 international companies have reduced or ceased their operations in Russia, having lost more than $170 billion as a result.