First nationalization of a foreign company What happened Putin signed a decree by which Sakhalin Energy Investment Company Ltd. becomes the property of Russia. This company has been producing oil and gas in Sakhalin since 1994 under one of the last remaining production sharing agreements. Details Now half of the company belongs to Gazprom, and half belongs to 3 foreign firms: - Shell Group 27.5% of shares; - Mitsui Group of Companies 12.5%; - Mitsubishi Group of Companies 10%. Now, by the Decree, a new company will be established in Russian jurisdiction. She will transfer all property, all rights and obligations of Sakhalin Energy Investment Company Ltd. Half of the shares of the new company will belong to Gazprom and half to the Government. Within 4 months, the Government must sell its share to Russian firms. This money will be credited to a special account. At the same time, the Government conducts an environmental and technological audit of the activities of foreigners in Sakhalin. And based on the results of the audit, it determines what damage foreign companies have caused to our country over all 28 years of work. Next, the amount of damage will be debited from that special account. This money will go to the budget. After everything that remains in the account, foreign shareholders will be able to pick up. An important point. According to this decree, all disputes on this process will be resolved in the Arbitration Court of Moscow. Not in any Stockholm or Hague arbitration.
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