Putin signs order to seize Shell’s Russian gas project - live updates

telegraph.co.uk: Putin has signed a decree to seize the rights to Shell’s gas project in Russia in a move that could force the British energy giant to abandon its investment.

A statement from the Kremlin ordered the rights to the Sakhalin-2 facility to be transferred to a new Russian company, citing threats to the country’s national interests and economic security.

Shareholders have one month to say whether they’ll take stakes in the new company and were warned they may not be fully compensated if they opt out.

The move could spark complications for Shell, which holds a 27.5pc stake in Sakhalin-2.

The firm previously said it will sell its holding – worth an estimated $4.1bn (£3.4bn) – as part of its withdrawal from Russia.

It is not clear whether Shell will be able to find a buyer, although Chinese state energy companies have been linked to a potential deal.

A Shell spokesman said: “As a shareholder, Shell has always acted in the best interests of Sakhalin-2 and in accordance with all applicable legal requirements. We are aware of the decree and are assessing its implications.”

09:52 AM