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Giant Shell-led energy project faces possible criminal charges
AFP
MOSCOW
Petroleumworld.com 10 26 06
A giant Shell-led oil and gas project off Russia's Pacific coast is facing possible criminal prosecution over environmental violations, Russian Minister of Natural Resources Yury Trutnev said Wednesday, news agencies reported.
"Violations at Sakhalin-2 concern at least five articles of the criminal code," Trutnev was quoted by ITAR-TASS as saying during a trip to the far east island of Sakhalin, where an environmental commission has been inspecting the massive project.
"Documents from the inspections will by sent to the general prosecutor within two weeks," the minister said.
Sakhalin-2, a 22-billion-dollar (17.5-billion-euro) project operated by British Shell and Japan's Mitsui and Mitsubishi, has been under fire from environmental regulators as the Russian state pushes for greater control over the country's largest energy deposits.
Dmitry Belanovich, the regional head of environmental monitoring agency Rosprirodnadzor, said the inspection commission was preparing materials to have the project's water use license removed.
Meanwhile Rosprirodnadzor deputy head Oleg Mitvol told Ekho Moskvy radio that the loss of the license would make contruction work on the project "impossible."
"Working without the license is criminally punishable," Mitvol said.
Trutnev said environmental inspections of the project should continue until November, and that the commission should produce a final calculation of the amount of harm to the environment within four months.
British Shell owns 55 percent of Sakhalin-2, while the rest is split between Japanese Mitsui (25 percent) and Mitsubishi (20 percent).
A recent campaign of environmental pressure on foreign energy companies has led to protests of unfair treatment by foreign officials, though regulators have since threatened domestic and even state-controlled companies with license removals as well.
AFP 25 1238 GMT 10 06
Copyright ©2006 AFP. All Rights Reserved.
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