Saturday, December 16, 2006

$20bn gas project seized by Russia

Shell is being forced by the Russian government to hand over its controlling stake in the world's biggest liquefied gas project, provoking fresh fears about the Kremlin's willingness to use the country's growing strength in natural resources as a political weapon.
The Russian authorities are also threatening BP over alleged environmental violations on a Siberian field in what is seen as a wider attempt to seize back assets handed over to foreign companies when energy prices were low.
The state, doing what it does best: stealing.
Shell and BP got what they deserved, playing
with bear traps.

It used to be that if you had the money, you
got the goods. That was all that was asked.

Now there's a Russian bear behind the curtain.

Ominous has been added to the oil price.

Full report.