Japanese and Indian companies in Sakhalin—1 were obliged to purchase sanctioned equipment

While American Exxon Mobile does not plan to return to the Sakhalin—1 project, other foreign shareholders will have to comply with the terms of the presidential decree. Among them — to provide foreign equipment and lobby for the lifting of sanctions.

Prime Minister Mikhail Mishustin signed an order that prescribes the obligation of Sakhalin—1 participants to comply with the decree of the President of Russia, which he signed after negotiations in Alaska and many perceived it as opening the door to return to the American Exxon Mobile project. Its head told The Financial Times that the company does not intend to return.

The new conditions will apply to the Japanese consortium of SODECO companies and the Indian ONGC Videsh. The order does not say anything about the Russian subsidiary of the American company.

So, Indian and Japanese companies are now obliged, for example, to conclude contracts for the supply of necessary foreign-made equipment, as well as spare parts. One of the conditions is lobbying for the lifting of sanctions against Russia by foreign states.

Also, foreign participants of Sakhalin —1 must transfer funds to the liquidation account of the project operator equal to those they had previously accumulated in the fund for the subsequent liquidation of the consequences of their activities.