Sign up now for FREE unlimited access to Reuters.com Register
This content was created in Russia, where the law restricts coverage of Russian military operations in Ukraine
MOSCOW, Aug 5 (Reuters) – Russia has banned investors from so-called unfriendly countries from selling shares in key energy projects and banks until the end of the year, stepping up pressure to confront sanctions with the West. Western countries and allies, including Japan, have imposed economic restrictions on Russia since it sent troops into Ukraine in late February. Moscow has responded by barring Western businesses and their allies from leaving Russia, and in some cases seizing their assets. The decree, signed by President Vladimir Putin and published on Friday, immediately bans investors from countries that supported sanctions on Russia from selling their assets in production sharing agreements (PSAs), banks, strategic entities, energy equipment companies, as well as other projects, from oil and gas production to coal and nickel. Sign up now for FREE unlimited access to Reuters.com Register Putin could issue a special waiver in certain cases for deals to go ahead, the decree said, and the government and central bank would have to prepare a list of banks for Kremlin approval. The decree did not mention investors by name.
PRESENTING THE HIT
The ban covers almost all major financial and energy projects where foreign investors still have stakes, including the Sakhalin-1 oil and gas project. On Thursday, Russian state oil major Rosneft ( ROSN.MM ) blamed ExxonMobil ( XOM.N ) for falling production at the Sakhalin-1 field group after the U.S. energy major said it was in the process of transferring its 30 %. to another party”. read more Separately, a government decree signed on Aug. 2 gave foreign investors in the Sakhalin-2 liquefied natural gas (LNG) project – Royal Dutch Shell and Japanese trading houses Mitsui & Co ( 8031.T ) and Mitsubishi Corp ( 8058.T ) – a month to claim their shares in a new entity to replace the existing project. The new decree does not cover the Sakhalin-2 project, he said. Shell has been exploring options to withdraw from the project, while the Japanese government has reiterated its desire for Japanese companies to retain their stakes there. Italy’s UniCredit ( CRDI.MI ) and Intesa ( ISP.MI ), U.S. group Citi ( CN ) and Austria’s Raiffeisen ( RBIV.VI ) continue to look for options to exit Russia, while others such as Societe Generale ( SOGN.PA), (ROSB.MM) and HSBC found a way out. read more Citigroup declined to comment on Friday, but on Thursday, the bank said in a filing that it would continue to reduce its business and exposure to Russia. Citigroup has stopped attracting new business or new clients in Russia, it said. Citigroup disclosed $8.4 billion in exposure to Russia as of June 30, up from $7.9 billion at the end of the first quarter. The exposure increased due to the rise in the value of the ruble. read more Sign up now for FREE unlimited access to Reuters.com Register Report from Reuters. Edited by Mark Potter and Frank Jack Daniel Our Standards: The Thomson Reuters Trust Principles.
