Russia initiates litigation against big investor operating in Kazakhstan

The Russian government has filed a lawsuit against several subsidiaries of Shell, reported Reuters, citing some legal documents. In Kazakhstan, the international corporation has been developing two big oil fields, Kashagan and Karachaganak.

The lawsuit was filed with the Moscow Arbitration Court on Oct. 2. It was initiated by Gazprom Export, the Ministry of Energy of Russia, the authorities of the Sakhalin region, Sakhalin Energy and the Prosecutor General’s Office of Russia. No other details of the case are available. Shell has declined to comment on the situation.

Before 2022, Shell had several projects in Russia. In particular, the company owned a share in the liquefied natural gas production plant on Sakhalin, run by Gazprom.

The Russian government has consolidated control over the plant in response to sanctions imposed by Western states, causing Shell to exit the country. The company also ceased investments in the Sakhalin facility and other Russian projects, including the construction of the Nord Stream 2 gas pipeline.

Shell is implementing several projects in Kazakhstan, being a member of the international consortium operating the Kashagan oil field with a 16.81% share. The company is also an operator of the Karachaganak project with a 29.25% share. In other words, Shell is considered one of the largest foreign investors in Kazakhstan. Shell is an international conglomerate with interests in the energy and petrochemical sectors, headquartered in The Hague (the Netherlands).