The Russian government announced earlier this year that the giant Sakhalin-1 energy project in the Siberian east, which has major international participation, would be reorganized under full control of the Russian government. What this means is that hostile countries are on the way out, and friendly nations are on the way in. This is something of a microcosm of the sea-change underway with the global economy.
India’s Oil and Natural Gas Corporation (ONGC) has announced that it will retain its 20% share in the Sakhalin-1 project as it shifts over to a new controlling entity (as per Russian decree), and it is considering increasing its stake. On Monday, Oct. 17, U.S. oil major ExxonMobil announced it has fully exited Russia after Moscow “unilaterally terminated” its interests in the Sakhalin-1 project. And Japanese firm SODECO is still deciding: “We … plan to make a decision by November 12 whether or not we will apply for a stake in the new entity after consulting with our stakeholders, including the Japanese industry ministry,” a spokesperson at SODECO was quoted as saying on Oct. 17.
