* This content was produced in Russia, where the law
coverage of Russian military operations in Ukraine
MOSCOW, July 1 (Reuters) - Russia sees no grounds for any
halt to liquefied natural gas (LNG) deliveries from Sakhalin-2
after Moscow moved to create a new firm to take over all rights
and obligations of the energy project, the Kremlin said on
The decree, signed by President Vladimir Putin on Thursday,
creates a firm to take over rights and obligations of Sakhalin
Energy Investment Co, in which Shell and two Japanese
trading companies Mitsui and Mitsubishi hold just under 50%.
The five-page decree, which follows Western sanctions
imposed on Moscow over its actions in Ukraine, indicates the
Kremlin will now decide whether the foreign partners can stay in
Sakhalin-2, which meets about 4% of the global LNG supply.
In case they no longer can stay, they will be paid a
compensation discounted on any damage made to the project after
an audit by the government, yet to be conducted. The funds will
be paid to special accounts and kept there until further notice.
Asked whether LNG exports from Sakhalin-2 were at risk,
Kremlin spokesman Dmitry Peskov said: "So far, we do not see any
grounds for this, especially given procedures which will be
conducted based on the decree."
Many Western companies are seeking to exit Russia after what
Moscow describes as a "special military operation" in Ukraine
and are looking for indications about any moves by Kremlin that
could affect their plans to leave.
Asked if Russia's approach to Sakhalin-2 could be repeated
in other area, Peskov said: "There can be no general rule here.
Each situation will be reviewed case by case."
(Reporting by Reuters; Editing by Edmund Blair)