Page "Sakhalin-II" Paragraph 3

The consortium Sakhalin Energy had a contract to produce gas without a local partner.

However, in 2005 – 2006 the consortium was heavily criticized due to environmental issues and the legal proceeding on violation of the Russian environmental regulations were initiated.

Under legal and political pressure, the consortium was forced to sell a majority stake to Gazprom.

On 21 December 2006, Gazprom took control over a 50 %- plus-one-share stake in the project by signing an agreement with Royal Dutch Shell.

Russian President Vladimir Putin attended the signing ceremony in Moscow and indicated that environmental issues had been resolved.