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. Last Updated: 07/27/2016

02/22/1993

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Cloud Over Sakhalin Oil Deal

The foreign consortium that last year won the rights to explore the Sakhalin offshore oil and gas field, one of the biggest investment projects in Russia, has spent $70 million but has still not received approval from the Russian government for its development plan. The consortium, composed of five of the world's biggest companies - McDermott International, Royal Dutch Shell, Mitsui & Co, Mitsubishi and Marathon Oil - won the rights to conduct a feasibility study of the project in March last year after a hotly contested international tender competition. At the time, the Sakhalin project was a shining example of Russia's willingness to open up to foreign investment. But since then the political wind in Russia has veered from the free-market shock therapy of the Gaidar team to the more nationalistic and inward-looking approach championed by parliament.
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